What are Stocks? Feb 7, 1999. A stock is a certificate of ownership in a corporation. There are two types of stocks; common and preferred. The latter performs more like a debt instrument, with a stated dividend return. A dividend is the company's way of sharing its earnings and profits with the stockholder, with a cash payment each quarter. Not all profitable companies pay dividends, however. Some outstanding corporations reinvest all their profits back into growing the company. Common stocks can be classified into three categories; growth and income, growth, or aggressive growth. Growth and income stocks pay a meaningful dividend, say at least 2 percent. These include stocks considered blue chips; that is, stocks with long histories of growing profits and dividends. Growth stock companies concentrate more on the growth of sales and earnings, without any particular concern for paying out dividends. Aggressive growth stocks are those of newer, more speculative companies that carry greater risks. George

Resources Online Investing - Online Investing is a wonderful guide for using the Internet to find, research, and buy winning stocks. Jon D. Markman, managing editor at MSN MoneyCentral Investor, writes that the Internet makes it easy to build a highly profitable portfolio. Right for You - Advice on choosing the right stocks for your needs.     Our editorial goal is to provide a forum for investment ideas. Our articles, columns, and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Kolias & Co of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.    Privacy Policy | © 1998-2002, Kolias & Co | Liability Disclaimer