Wednesday, June 11, 2008

Kinds of Nigerian Stocks

Blue Chip Stocks:
Consists of the oldest continuously profitable companies that are more than 100 years old. They have the lowest risk and lowest gains.
Growth Stocks:
They are those stocks that are expected to have superior earnings. They usually don’t pay dividends because they reinvest their earnings for growth. Their share price can increase dramatically while in their growth stage. When they have a setback for some reason, their price can also go down dramatically. You must be ready for these possible price fluctuations.
Speculative Stocks:
A stock is considered speculative when the chance of losing you money is small. And at the same time the chances of making a fortune is equally small. This happens when a company that has little or no financial history comes to the open market. There are no available data analyze them

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