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What are two types of stocks?

I want to know the difference between the two, in order to make short and long term investments. japan sports-agent stocks-investing stockbroker

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Douglas’s Answer

There are many good books on this subject. A great place to start is with Ric Edelman's book "Rescue Your Money". Mr. Edelman is a top rated financial advisor that I have used for years. Do not buy anything from anyone until you completely understand what you are doing and rather than buy individual stocks, I would recommend a Mutual or Exchange Traded Fund (ETF).


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doug Lemmo

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Nicolas’s Answer

The two types of stocks from an accounting perspective are: growth stocks and value stocks. Growth stocks have high expectations of future earnings growth and therefore usually trade at higher prices. Value stocks have lower expectations of future earnings growth and therefore trade at lower prices. Thus, growth stocks are better for long-term investments and value stocks are better for the short-term.

Nicolas recommends the following next steps:

If you want to get into trading stocks, have a plan of how much of your stocks you want to keep for a long time. The remainder can be short-term investments that are made up of value stocks. Depending on your investment preferences, you can find a stock-trading app that meets your needs.
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Prabhat Kumar’s Answer

Two types of stocks are common stocks and preferred stocks. For investment common stocks should be bought since it provides you voting rights and dividends which is part of profits.
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