[et_pb_section bb_built=”1″][et_pb_row][et_pb_column type=”4_4″][et_pb_text _builder_version=”3.0.64″ background_layout=”light” text_orientation=”left” border_style=”solid”]

People are often afraid to get involved in stocks because they think it’s risky. It is true that the price fluctuates a lot and it is also affected by a lot of factors aside from the actual performance of the company but there are certain stocks that are more riskier but gives higher return over the other stocks and vice versa. There are three general classifications of stocks, Blue-chip stocks, regular stocks and junk stocks. In other rating companies like Moody’s, regular stocks are broken down to ABCs similar to the school grades the students but for simplicity we will just call them regular stocks.

Blue-chip stocks are the safest type of stock in the market. Only stable companies with stable profits proven for years are called Blue-chip stocks. The top companies in your countries are typically the ones that have this level. These types of companies have regular profits but they are usually at its peak, they do not have much space to grow their business, in return market participants does not expect these companies to have much growth in their stock price too. Major corporate decisions or projects could improve the outlook on these companies. However, it is still good to have a Blue-chip stock not only because of its stability but these companies are the ones that usually release dividends due to its lasting performance.

 

Regular stocks are similar to Blue-chip stocks in a sense that they are quite stable but have not reached its peak. Compare to the other two, this type of stock is have the medium risk and medium return. Corporate news will affect the stock price of this type of stock because market participants watch the corporate actions closely.

Junk stocks are usually the riskiest yet give the highest return. These types of stocks fluctuate heavily which makes it a good choice for traders. Companies earn this type of rating if they are a totally new company or have a lot of unpaid debts. Rating companies think that this type of companies have a low capability of paying their debts. If any good news was released from these types of companies it would result to a huge jump in prices.

Each type of stock has its own pros and cons but with the right experience and knowledge it would not be difficult for you to pick which stock is the best. Typically, investors do not only focus in one type of stock but have a portion of each in their investment basket. By doing so, you would manage the risk and return of your portfolio.

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row][et_pb_column type=”1_3″][et_pb_image _builder_version=”3.0.64″ src=”https://finwaze.com/files/2017/10/FOREX-PREVIEW.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” sticky=”off” align=”left” always_center_on_mobile=”on” border_style=”solid” force_fullwidth=”off” /][/et_pb_column][et_pb_column type=”2_3″][et_pb_text _builder_version=”3.0.64″ background_layout=”light” text_orientation=”left” border_style=”solid”]

Learn more of this on our FREE Financial Literacy seminar!

[/et_pb_text][et_pb_button _builder_version=”3.0.64″ button_text=”Reserve your seat here” button_url=”https://finwaze.com/seminar/” url_new_window=”off” button_alignment=”left” background_layout=”light” custom_button=”off” button_letter_spacing=”0″ button_icon_placement=”right” button_letter_spacing_hover=”0″ /][/et_pb_column][/et_pb_row][/et_pb_section]

17 Comments
  1. and web hosting 2 months ago

    Hi there! Do you use Twitter? I’d like to follow you if that
    would be ok. I’m undoubtedly enjoying your
    blog and look forward to new posts.

  2. or quest bars 2 months ago

    Hey! I’m at work browsing your blog from my new iphone
    3gs! Just wanted to say I love reading your blog and look
    forward to all your posts! Keep up the excellent work!

  3. http://j.mp/ 2 months ago

    This article is genuinely a good one it helps new the web visitors,
    who are wishing for blogging.

  4. scoliosis surgery of 2 months ago

    Hi, I do think this is an excellent site. I stumbledupon it
    😉 I’m going to return once again since i have book marked it.
    Money and freedom is the best way to change, may you be rich
    and continue to guide others.

  5. j.mp 2 months ago

    You are so cool! I do not believe I’ve truly read through anything like
    that before. So good to discover someone with a few
    original thoughts on this subject matter. Seriously..
    many thanks for starting this up. This web site is one thing that’s needed on the internet, someone with a
    little originality!

  6. j.mp 2 months ago

    Fastidious answer back in return of this issue with real arguments and describing everything on the topic of that.

  7. http://bitly.com 2 months ago

    Hello to all, it’s genuinely a fastidious for me to visit this web page, it contains helpful
    Information.

  8. on scoliosis surgery 2 months ago

    I will immediately grab your rss feed as I can not to find your e-mail subscription link or e-newsletter
    service. Do you have any? Please let me realize in order that I may subscribe.
    Thanks.

  9. quest bars or 2 months ago

    Incredible! This blog looks exactly like my old one!

    It’s on a entirely different subject but it has pretty much
    the same layout and design. Great choice of colors! quest bars http://bitly.com/3jZgEA2 quest bars

  10. http://bitly.com/ 2 months ago

    Quality content is the key to interest the viewers to pay a
    quick visit the website, that’s what this site is
    providing. cheap flights http://1704milesapart.tumblr.com/ cheap flights

  11. Great article. I am going through a few of these issues as well..
    scoliosis surgery https://0401mm.tumblr.com/ scoliosis surgery

  12. app.gumroad.com 2 months ago

    Hi there to all, how is everything, I think every one is getting more from this web site, and
    your views are pleasant for new users. asmr https://app.gumroad.com/asmr2021/p/best-asmr-online asmr

  13. http://tinyurl.com/ 2 months ago

    What’s up everyone, it’s my first go to see at this site, and piece of
    writing is in fact fruitful in support of me, keep up posting these types of posts.
    ps4 games https://bit.ly/3nkdKIi ps4 games

  14. coub.com 2 months ago

    Pretty! This has been an incredibly wonderful article.
    Thanks for providing this information. scoliosis surgery https://coub.com/stories/962966-scoliosis-surgery scoliosis surgery

  15. http://www.iherb.com/ 1 month ago

    It’s an awesome paragraph in favor of all the internet people;
    they will take benefit from it I am sure. quest bars https://www.iherb.com/search?kw=quest%20bars quest bars

  16. the ps4 games 3 days ago

    Thanks for finally talking about > Classification of stocks | Finwaze "Your Turn to Change" < Liked it!

  17. ps4 games was 2 days ago

    Hi there! I just wanted to ask if you ever have any
    problems with hackers? My last blog (wordpress) was hacked and I ended up losing a few
    months of hard work due to no data backup. Do you
    have any methods to protect against hackers?

Leave a reply

Your email address will not be published. Required fields are marked *

*

CONTACT US

We're not around right now. But you can send us an email and we'll get back to you, asap.

Sending

FINWAZE makes no representations or warranties, express or implied, in relation to this website (www.finwaze.com) or the information and materials provided on this website. It does not also warrants that this website will be constantly available or available at all times. The information on this website is complete, true, accurate or non-misleading. Nothing on this website constitutes, or is meant to constitute, advice of any kind. FINWAZE shall not be liable for any damage or injury, whether direct or indirect, that it may cause in relation to the contents of, or use of, or otherwise in connection with this website. By using this website, you agree to the reasonableness of the limitations of liabilities herein set out and further agree to assume whatever risk, loss, damage or injury in may cause in connection to the use of this website. No claims shall be brought personally against the officers and employees of FINWAZE, in connection with the use of this website. The user of this website agree to the limitations of warranties and liabilities herein set out to protect the officers, employees, agents, subsidiaries, successors, assigns and sub-contractors as well as FINWAZE. Any unenforceable provisions that may be found on this website under applicable law shall not affect the enforceability of the other provisions.

Legal Documents  |  ©2021 Finwaze Philippines

Pin It on Pinterest

Share This

Log in with your credentials

Forgot your details?