Stocks are a type of financial instrument that is traded on stock exchanges around the world. They are similar to bonds in that they represent ownership shares of a company. However, stocks have no maturity date, and their value fluctuates based on the performance of the companies whose stocks they represent. When a company performs well, its stock price goes up and vice versa. Stock prices are determined by supply and demand. A company's stock price may go down if investors do not want to buy the stock anymore or if the company does not perform well.
1. Active Stocks
Active stocks are companies that have been trading for at least two years and have a market capitalization (market value) greater than $500 million. These stocks are considered strong and stable and tend to outperform the market over time. There are many active stocks out there, but some examples include Apple Inc., Amazon.com, Inc., Netflix, Inc., Google, Inc., Facebook, Inc., Microsoft Corporation, Berkshire Hathaway, Inc., Walt Disney Company, Johnson & Johnson, Coca-Cola, etc.
2. Growth Stocks
Growth stocks are companies that have less than two years of trading history and a market capitalization between $100 million and $500 million. These companies are still relatively young and may not yet be established enough to meet investors' expectations. However, they are expected to experience significant increases in sales and earnings over the coming years. Some examples of growth stocks include Yelp, Inc., Twitter, Inc., LinkedIn, Inc., Pinterest, Inc., Square, Inc., GoPro, Inc., Tesla Motors, Inc., Uber Technologies, Inc., Alibaba Group Holding Limited, etc.
3. Value Stocks
Value stocks are companies that have traded for less than two years and a market capitalization below $100 million. These companies are often undervalued and offer great potential for long term investment returns. Some examples of value stocks include American Airlines, Inc., Southwest Airlines Co., AT&T, Inc., UnitedHealth Group, Inc., Caterpillar, Inc., Procter & Gamble, Inc., Pfizer, Inc., Verizon Communications, Inc., Exxon Mobil Corp., etc.
4. Defensive Stocks
Defensive stocks are companies that are well known for their stability and solid financial performance. These stocks are generally low risk investments and are often purchased as a hedge against other stocks. Some examples of defensive stocks include Boeing Co., Wells Fargo, Bank of America, General Electric, JPMorgan Chase, etc.
Which is best stock to invest?
1. Apple Stock
Apple stocks have been around since the late 1800's and were once considered the perfect investment. In fact, they were even called the "poor man's gold". While they may not seem like much today, back then they were a great way to make money off of the booming industrial revolution. Apple stocks were traded publicly until the early 1980's when the company was purchased by Steve Jobs. Since then, the price of Apple shares have skyrocketed, making them an excellent choice for investors looking for a quick profit.
2. Diamond Stock
Diamonds have been around for millions of years and have always been a symbol of wealth. Today, diamonds are still coveted for their beauty, brilliance, and rarity. Companies that produce diamonds are some of the richest companies in the world. As long as people continue to desire diamonds, the diamond industry will never die out. Diamond stocks are extremely profitable for those who buy them at the right time.
3. Gold Stock
Gold stocks have been trading for thousands of years and have always held value. Gold is often seen as a storehouse of value due to its scarcity and durability. Gold stocks are extremely popular among investors and many financial institutions seek them out as a safe haven.
4. Silver Stock
Silver stocks are similar to gold stocks in that they've been trading for hundreds of years. However, silver is less valuable than gold. Unlike gold, silver does not hold any intrinsic value. Silver stocks are only worth something if someone is willing to pay for them.
5. Oil Stock
Oil stocks are another type of commodity stock. Like gold and silver, oil has been traded for thousands of years and has always been a valuable resource. Many countries across the globe rely heavily on oil revenues. Oil stocks are extremely volatile and can fluctuate wildly.
6. Marijuana Stock
Marijuana stocks are becoming increasingly popular. There are several marijuana stocks available to purchase. These stocks vary in how they're valued and what kind of return they offer. Most marijuana stocks fall under the CSE (Canadian Securities Exchange) and do not trade on US exchanges.
7. Real Estate Investment
Real estate is another great option for investing. You can find real estate opportunities everywhere from urban centers to rural towns. Buying property requires extensive research and planning, so it's not for everyone.