In This Chapter
• Understanding growth, value, and core stocks
• Sizing up companies by their stock
• Defining stock sectors
Stocks can be divided into categories or classes. While you may think in terms of a “technology stock” or a “health care stock,” this is just one of many ways to categorize stocks. Another way to organize stocks is by the main reason investors are interested in individual stocks—their attributes in the market. This method is one of the most basic and remains one of the most important methods of organizing stocks.
What is gained by organizing stocks? For one thing, organized stocks can be compared with other stocks in the same category. This is helpful in understanding whether a stock is outside ...