Stocks

Stocks represent ownership in a company.  The two main ways to see your stock investment grow is through dividends, if issued, and capital appreciation.  Dividends are a distribution of the company’s earnings while capital appreciation is when the value of your shares or ownership becomes higher than what you paid for them.

Stocks are broken into three main categories:

1)  Large-Cap Stock:  This classification usually includes large, well established companies with over $5 billion in outstanding market value.

2)  Mid-Cap Stock:  These are usually companies with $1 to $5 billion in market capitalization.

3)  Small-Cap Stock:  These are often smaller, less established companies, but may provide a faster growing company.

Historically, stocks have offered the best opportunity for long term growth.  All stocks may be subject to risk and may fluctuate in value.