Stock can be categoried into different type of category. Each category is disticnt from the other and they either keep investors away or attract them.
Some of the more regular category are:
- In style Stocks - These stock are shares of corporation that investors purchase as it is in trend to purchase them with hope to avoid out of the trend. For examples, when banking stock is in trend, some investors will purchase in style stocks so that they are following the trend and didn't leave out from the gang.
- Optimistic Stocks - Optimistic stock are those stock that are expected to rise considerably in the short period.Those investors invest in optimistic stock with expectation of great profits. Normally, these kind of stock will have analyst report that support their great profit forecast in short term. If the forecast is correct, one can make great profit. Reversely, if the forecast did not materialize, one can caused great loss as well.
- Low High Stocks - These stock normally are in low price but the investors believe that these stocks will increase in value and can sell them at that time to earn the profit. Some investors also called is as growth stocks or value stocks, which will have potential to rise in value.
- Trading Stocks - Trading stocks normally are purchased by investors that will sell these stocks at the earliest opportunities of capturing a certain profit. The corporation might not be particularly strong but they have news or rumours that might produce potential of rising. The investors that invests in trading stock also called trader. These traders normally does not believe in holding these shares.
- Sensitivity Stocks - These stocks movement will actually impact the stock exchange index as they are calculated as part of the components for stock exchange index.These stock usually are giant corporation or blue chips. Its movement up and down will be reflected in stock exchange index. Hence, these stock are sensitive to stock exchange.