Thursday 19 July 2012

Invest Different Types of Shares or Stocks

Invest Different Types of Shares or Stocks


Almost all shares traded on stock exchanges are common shares, which are those we have described so far. Are entitled to participate in and benefit sharing in the assets resulting from liquidation, the preferential subscription in the issue of new shares or convertible bonds, to attend and vote at general meetings of shareholders and to challenge corporate resolutions.

Other types of shares that have little nuances in terms of the rights incorporated, how the preference shares, registered, non-voting and redeemable.

For the investor is much more interesting to meet other criteria of classification

According to the "quality" of the issuing company

Values star or "blue chips" - are shares of companies with strong economic and financial structures, either within their sector and also tend to pay dividends. Values are high market capitalization and high liquidity, so that investors rarely have trouble selling them.

Values speculative or "peas" - Located on the other end are the shares of companies of any sector, small to medium size and small-cap, incorporating a high speculative component and therefore a high risk.

As "cyclical" regardless of the sector

Cyclical Stocks - They belong to companies whose profit generation is linked to the general trend of the economy. The products or services of these companies are less in demand by consumers for negative economic cycles and defendants during buoyant periods. Examples: Automotive industry, airlines, steel, construction.

Defensive Stocks - At the other extreme are the shares of companies less affected by the ups and downs of the economy. These actions are more stable during hard times because consumer demand does not decrease as dramatically during negative cycles. Examples: Electric Companies, food, ...

Stocks such as "income"  (income stocks) - These are stocks of companies such as "blue chips" that generate dividend income on a regular basis. Its share price is usually high, and the investor does not expect to make profits for their appreciation (capital gain), but are considered less risky stocks long term. Example: Electric Companies

Stocks "value" (value stocks) - are actions that are considered cheap in relation to other companies in comparable industries and sizes or have a good price / earnings per share (PER). The investor buys this type of action with the hope that the quoted price is adjusted upwards, thus producing a surplus.

Stocks "growth" or "revaluation" (growth stocks) - These are stocks of companies with estimated sales growth and profits. Normally they do not pay dividends, so the investor seeks profitability through appreciation in the medium and long term. They usually have medium-high prices relative to their current benefits. A subdivision of the class actions is "aggressive growth", which are the most risky.