The basics and greatest of stock market investing are that greater short term risks has the potential for long-term rewards, for (examples) the money markets are typically associated with the least potential for investment risks, or the chance that price swings will cause your investment to lose value., as a result, money markets are also likely to provide the lowest long term returns.
Stocks are on the opposite ends of the risks /return spectrum.
Stocks generally pose the greatest risks of short term prices volatility and loss, yet stocks have historically provided the highest long term average annual returns.
Govt. Bonds are in the middle, they’re typically less risky than stocks and generate lower returns than stocks, but Govt. Bonds are riskier and more likely to generate better returns than money markets.
The Stocks are often the investment of choice for two types of investors., the Investors that are willing and who will take a big risks., in return for a potentially big short-term return., and those who are willing to tolerate short-term price swings., while they’re pursuing the most important investment goals that are still many years away.
There are various types of corporation’s and several differential of numerous company’s there are many different types of Stocks.
The Stocks Investment are often categorized according to the following descriptions between., small, medium, and large caps stocks
choosing the stock who own the capitalization’s in the Global Market’s and the sizes of a companies is determined by overall stock market valued.
Examples, in another term for overall Stock Market values are Market Capitalization’s and or Market Caps for short.
Stocks issued by relatively small companies are called small cap stocks. The mid cap stocks are those issued by medium sized companies /corporate listings.
The large cap stocks represent ownership in the Stock Capital Market, that are the biggest companies traded in the Global Market, stock exchange within the Canadian and American market listings includes, government bonds, mutual funds and index funds for larger Investor in North/Central America, that can be found the corporate listing from all over the world.
In general rules investments., and or Investing in the large caps stocks, and growth stocks tend to be less risky while the Investments in small cap stocks and value stocks, is typically who carry more risks.
The large diversified corporations /company’s with a solid track record is more likely to weather rough economic times than a small company/corporations that is struggling to generate profits.