When building an investment portfolio with stocks, investors should aim to find a mix of different types of stocks. To choose the right stocks, you’ll need to consider what types suit your risk tolerance, your short-term needs, and your long-term personal financial goals.
And this all begins with understanding different types of stocks.
In this article, you’ll learn why it’s important to understand different types of stocks, a brief overview of stocks and how they generate value for investment portfolios, and the various ways stocks can be classified and — more importantly — evaluated.
Note: This article originally appeared at Investors Alley.