| Category |
Description |
| Market Capitalization |
- Large-Cap Stocks: Companies with a high market capitalization, typically over $10 billion.
- Mid-Cap Stocks: Companies with a medium market capitalization, generally between $2 billion and $10 billion.
- Small-Cap Stocks: Companies with a relatively low market capitalization, usually under $2 billion.
|
| Sector or Industry |
Stocks can be grouped according to the industry or sector the company operates in. Common sectors include technology, healthcare, finance, consumer goods, energy, and more.
|
| Growth vs. Value |
- Growth Stocks: Companies that are expected to have above-average growth in revenue and earnings. These stocks often have high valuations.
- Value Stocks: Companies that are considered undervalued relative to their fundamentals. These stocks might have lower valuations and higher dividend yields.
|
| Dividend Yield |
- Dividend Stocks: Companies that regularly distribute a portion of their earnings to shareholders in the form of dividends.
- Non-Dividend Stocks: Companies that reinvest their earnings into the business instead of paying dividends.
|
| Geographic Location |
Stocks can be categorized based on the geographic location of the company's operations. For instance, UK stocks would fall under the category of UK-based stocks.
|
| Blue-Chip Stocks |
Stocks of well-established, financially stable companies with a long history of strong performance. These stocks are often considered safe investments.
|
| Cyclical vs. Defensive |
- Cyclical Stocks: Companies whose performance is closely tied to the economic cycle. These stocks tend to do well during economic expansions and struggle during recessions.
- Defensive Stocks: Companies that tend to perform well even during economic downturns. They offer stability and consistent demand regardless of the economic situation.
|
| Risk Profile |
Stocks can be categorized based on their risk level, ranging from high-risk/high-reward to low-risk/low-reward.
|
| Penny Stocks vs. Blue-Chip Stocks |
- Penny Stocks: Low-priced stocks that often trade outside major exchanges. They are considered highly speculative and can be more volatile.
- Blue-Chip Stocks: As mentioned earlier, these are shares of well-established, financially sound companies.
|
| International Stocks |
Stocks of companies that are based in other countries but might be available for trading on the UK stock market.
|