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Blue Chip Stock
Common Stock
Income Stock
Growth Stock
Penny Stock
Preferred Stock
Stock Split
Blue Chip Stock
Stock of a corporation maintaining a good dividend return and having
sound management and good growth potential.
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Common Stock
Securities that represent an ownership interest in a corporation.
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Income Stock
A stock, the earnings of which are mainly in the form of dividend income,
as opposed to capital gains. It is considered a conservative, dependable
investment, suitable to supplement other income. The stock of well-established
corporations with a consistent record of paying dividends is usually
considered income stock.
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Growth Stock
Stock of a corporation whose existing and projected earnings are sufficiently
positive, to indicate an appreciable and constant increase in the stock's
market value over an extended time period. The rate of increase is normally larger than those of most corporate stocks. Synonymous with performance
stock.
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Penny Stock
Low-priced issues, often highly speculative, selling at less than $1
a share. Frequently a term of disparagement, although a few penny stocks
have developed into investment-caliber issues.
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Preferred Stock
Corporate stock, whose owners have some preference as to assets, earnings,
and so on, not granted to the owners of common stock of the same corporation.
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Stock Split
The division of the outstanding shares of a corporation into a larger
number of shares. A 3-for-1 split by a company with 1 million shares
outstanding would result in 3 million shares outstanding. Each holder
of 100 shares before the 3-for-1 split would own 300 shares after the split.
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