Which stocks is the best to trade on NASDAQ and NYSE
|Types of Stocks | Photo Credit: Dick Thomas Johnson Under CC 2.0
Types of Stocks to Trade on NASDAQ or NYSE?
Blue-Chip Stocks. These are the oldest and historically most profitable companies. The vast majority of the 30 Dow Jones Companies Stocks are blue-chippers.See Also: Socially Responsible Investing Meaning and Definition
Growth Stocks. These are stocks that the experts consider to have the best potential for solid earnings. They usually don’t pay dividends because they reinvest their earnings for growth.
Income Stocks. Income stocks are stocks that regularly pay dividends. These are typically entrenched companies with substantial earnings. The stock prices of such stocks usually move glacially over longer time periods.
Citations and Reference: Brian O’Connell, Author, Build Your Own Mutual Fund: How to Use a Personal Portfolio to Take Control of Your Financial Life, 2004 Adams Media, Avon Massachusetts, USA. p.84
In my own idea, I would prefer to buy blue chip stocks that regularly pay dividends. This simply means, I should have blue chips and income stocks in my portfolio. What about you? Which types of stocks to trade on NASDAor NYSE do you prefer? Are you comfortable in buying growth stocks wherein the earnings of the company are reinvest? Are you an online stock trader or a stock market investor doing dollar cost averaging? Share your point of view about choosing the best stocks using the comment box. Thank you!