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CLASSIFICATIONS OF STOCK
| GROWTH
|
Pays little or no
dividend, used primarily for growth of capital. Profits are earned through stock
price appreciation. |
| INCOME |
Dividend paying
stock, normally pays monthly or quarterly. Stock price normally does not appreciate
quickly or by much. Profits are earned through dividends and small stock growth. |
| CYCLICAL
|
Companies that
are highly dependent on the state of the economy* i.e.: Ford, American Airlines.
(*When the economy slows, the stock price/earnings can drop rapidly; when the economy
regains, the stock price/earnings can rise rapidly) |
| BLUE
CHIP |
Refers to stocks
of the largest, most consistently profitable corps. (The list is not consistent and does
change) |
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