Investment in Stocks Flashcards
refers to the acquisition of shares in corporations with the goal of earning profit either through their sale or periodic dividends.
Investment in Stocks
Represents basic ownership in a corporation.
Common Stock
A portion of owners’ equity with preference over common stock in terms of dividends and asset claims.
Preferred Stock
Stocks are classified according to the business sector (5)
Financials
Industrials
Property
Services
Mining & Oil
Stable, well-established companies with consistent earnings.
Blue Chips
Companies expected to grow faster than the market.
Growth Stocks
Prices move with the economy (e.g., travel industry).
Cyclical Stocks
Earnings remain steady despite economic shifts (e.g., utilities).
Defensive Stocks
High-risk, high-reward stocks with future potential.
Speculative Stocks
Large companies with high market value
First Liners
Medium-sized companies
Second Liners
Smaller companies.
Third Liners
Traded on the stock exchange.
Listed Stocks
Not traded on the stock exchange.
Unlisted Stocks
(?) Stocks: For Filipinos only
Class A