There are thousands of stocks in the world. And each of those stocks fall under different categories and sectors. It can all be confusing but don’t worry, I’m here to help!
Six of the most common stock types are blue chip, growth, dividend, speculative, cyclical and defensive. The graphic above shows a few stocks that fall under each of these categories.
If you are investing in individual stocks, it is recommended to invest in an assortment of stock types. This is called diversification. By diversifying your investments you are reducing the risk in your portfolio.
What is your favorite stock type? Let me know in the comments!
