1. Common Stocks

These are the most widely known stocks, giving shareholders voting rights and potential dividends. However, they come with higher risk, as dividends are not guaranteed.

2. Preferred Stocks

Preferred shareholders receive fixed dividends before common stockholders and have priority if the company goes bankrupt. However, they typically lack voting rights.

3. Growth Stocks

Issued by companies with high potential for expansion, growth stocks reinvest profits instead of paying dividends. They are ideal for long-term investors seeking capital appreciation.

4. Value Stocks

These stocks belong to companies trading below their intrinsic value. Investors buy them expecting the market to recognize their true worth, leading to price appreciation.

5. Dividend Stocks

Companies issuing these stocks regularly distribute profits as dividends. They are favored by income-focused investors looking for steady returns.

6. Blue-Chip Stocks

Large, stable companies with strong financials and a history of reliable performance fall under this category. Examples include Apple, Microsoft, and Coca-Cola.

7. Small-Cap, Mid-Cap, and Large-Cap Stocks

Stocks are classified based on market capitalization (company size):

• Large-cap (over $10 billion): Stable but slower growth.
• Mid-cap ($2–10 billion): Moderate risk and growth.
• Small-cap (under $2 billion): High risk but high growth potential.

8. Penny Stocks

These are low-priced stocks (usually under $5) from smaller companies. They carry high risk but can yield significant returns for speculative investors.