Low-Risk, Mid-Risk, and High- Risk Stocks

Some investors refer to stocks in terms of risk. The evaluations of low-risk, mid-risk and high-risk are far from precise - what one investor seeks as risky another investor may see as only somewhat risky. In general, though, penny and speculative stocks fall into the high risk category, while stocks from banks and some utilities fall into the low risk category. Those stocks which have a good history of dividend payout may be considered medium risk.

Knowing about the different types of stocks available shows you that you have many options when it comes to investing. Rather than thinking of stocks as something monolithic, you should consider all the types of stocks and select those that best meet your goals and your investment.