Sunday, March 28, 2010

Type of Stock

Stock can be defined in to 3 type.Which kind of stock is better for invest? It depend on your point of view. Normaly most of the invester invest in growth stock.

1.) Growth Stock
2.) Value Stock
3.) Income Stock


Growth Stock : Dividend Yield may be low in this type of stock because most of the profit will invest again.
Capital gain will increase quickly. Aggressive invetser should invest in this stock.

Value Stock : Book value equal or lower than Market value.

Income Stock : Mostly Dividend Yield may be height. But Capital gain increase too slow.
Uitility stock (electricty, gas and phone service provider) are Income Stock.
Conservative investor should invest in this type of stock.

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