Get to know your stocks

Stocks are like bits and pieces of a company sold to the public. When the company grows or shrinks, the stocks value changes accordingly. Because of this buying stocks at a lower price and selling them when they grow is a very common way for people to make money. This is the basis of the whole stock market and very much common knowledge. However, when learning to buy shares there is much more to the stock market than meets the eye.

Often people will become intimidated by the great amount of differentiation between stocks. There is simply not just one form of "stock" and it is important to know the difference between type of stocks when investing online for the first time.

A few kinds of stocks you should be aware of are

Value Stocks

Values stocks are usually cheap stocks that are attatched to strong companies. Due to this they can be traded for less value on the stock market. This makes them accesible to many people and a great way to get into the stock market for the first time. Even though these stocks are generally cheaper, they often are related to stable companies.

Blue Chip Stocks

These are the stock you usually hear about. They are most commonly attatched to well know financially stable companies. This give them the reputation of the being wise investments. This is somewhat true, yet even big companies lose money or can fail depending on the economy. It is extremely important to pay attention to your blue chips stocks if you have many of them, since a sudden crash could be devistating to your wallet.

Growth stocks

Growth stocks are very dynamic stocks that grow faster and at sudden rates compared to the rest of the market. Technology based companies are behind many of these. They are somewhat opposites of value stocks. Do not expect many dividends because the amount invested is usually put towards growth.