Types of Stocks

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There are very many different types of stocks, including income stocks, common stocks and growth stocks, but they all represent some sort of ownership in a company. Buy a piece of a company with the expectation of earning income on that purchase with help from a licensed financial planner in this free video on the stock market and investing.

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Video Transcript

Hi, my name is Bill Rae. I'm with Alumni Financial Services. I've been in the business in the finance world for well over 20 years. Today we're going to talk about types of stocks. That is a broad, broad question. First of all, perhaps we should get a, just a general idea of what a stock is. Most folks understand a stock is a ownership in a company. In other words, if I owned a company, you would buy a little piece of my company with the expectation of earning income on that purchase. Also want to let you know we're not giving stock advice here today. But what I will tell you about the type of stocks is there are many of them. Just about any word you can throw in front of stocks can basically come up as a type of stock. But generally there are income stock, there are growth stock, income means that you are going to get money off the stock meaning I'm paying you money quarterly, annually. Growth stock generally I would put the money back into the company and I would grow the company. From there you have all sorts of types of stocks. Common stocks, just so many names for stocks. So how does one get an understanding of that? Well my advice to you as always is to sit down and talk with a licensed professional. Seek outside counsel. There are also many books at the library. There's many online that you can begin to go to their websites, brokerage houses, take a look and start reading the language. Get an understanding. The government also has an excellent website you can go to. My name is Bill Rae, I'm with Alumni Financial Services and as always, we urge you to seek outside counsel and we're here to help you build wealth.

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