1. Based on Market Capitalization
✦ Large-Cap Stocks ~ These represent shares of big, established companies with a market cap usually above $10 billion: they are generally considered stable and safe investments but may have slower growth
✦ Mid-Cap Stocks ~ Companies with a market cap between $2 billion and $10 billion: they can offer a balance between growth and stability
✦ Small-Cap Stocks ~ These are shares of smaller companies with a market cap under $2 billion: they have higher growth potential but come with increased volatility and risk
2. Based on Growth Patterns
✦ Growth Stocks ~ Companies that are expected to grow at an above-average rate compared to other stocks in the market: they might not pay dividends as they reinvest profits
✦ Value Stocks ~ Shares of companies that are believed to be undervalued compared to their intrinsic value: they often have lower price-to-earnings ratios and may pay dividends
3. Based on Dividend Payment
✦ Dividend Stocks ~ Companies that return value to shareholders by paying dividends regularly
✦ Non-Dividend Stocks ~ Typically growth stocks, these companies reinvest earnings instead of paying dividends
4. Based on Industry or Sector
Stocks of companies operating in a specific sector like healthcare, technology, or energy
5. Based on Location
- Domestic Stocks ~ Shares of companies based in the investor's home country
- International Stocks ~ Shares of companies based outside the investor's home country
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