In this lesson, we'll introduce you to some types of stocks you can invest in.
Itโs not super important that you remember all of them, but itโs just to give you an idea of all the different stocks out there!
Bluechip stocks ๐ are large, reputable companies like Apple, Disney, etc.
They're generally considered to be both low-risk and relatively high-return investments.
Penny stocks are any company whose share price is < $1.
Often from small companies and considered risky ๐ช
Growth stocks are companies like Tesla with the potential to grow much faster than the market on average ๐, but are more volatile.
They typically have a high (or negative) P/E ratio and are often riskier.
Value stocks are companies that generate significant profits at a lower share price ๐ธ
They're often less risky.
Dividend stocks just refer to any company that issues dividend payouts generally quarterly โฐ
Fractional stocks are any stocks that you can purchase fractions of for as little as $1 ๐ฅณ
Even if a fractional stock's price is $250, you would still be able to invest in it ๐ช
Non-fractional stocks require you to purchase a whole number of shares, instead of fractions (parts)
If DAVE is worth $6, then you must pay $6 to invest in it๐ธ
No type of stock is necessarily better than any other type!
But now you have a good idea of the options out there! ๐ฅณ