Are all stocks the same?

Name the types of stocks discussed in your assigned chapters and explain your answer in detail. Please share your personal experience with stocks as well.

Explain your answer in 200 words

Income stocks are issued by companies that pay large dividends, such as utility companies like Duke Energy, Exelon Corporation, and Exxon Mobil Corporation. Investors who are looking for reliable income from their investments and not appreciation (an increase) in the value of their shares often invest in income stocks.

Blue chip stocks are issued by companies that have a long history of consistent growth and stability. Blue chip companies pay regular dividends and maintain reasonably steady share prices. General Electric, IBM, The Walt Disney Company, and 3M are examples of companies that are considered blue chip stocks.

Growth stocks are stocks that are expected to generate revenues and earnings that increase at a faster rate than the average companys does. These stocks pay little or no dividends. Instead, the firms that issue them retain their earnings and reinvest them in new projects that fuel the growth of the firms. Investors that buy growth stocks hope that their value will increase. Growth stocks tend to be riskier than other stocks because these companies often do not have proven track records. Tesla, Trulia, and Google can be considered growth stocks.

Value stocks are stocks that are viewed as being priced lower than what they should be based on the earnings and financial performance of the companies that issue them. The prices of these stocks have the potential to increase when the market adjusts for their incorrect valuation. Value stocks lie at the opposite end of the spectrum as growth stocks.

Cyclical stocks are issued by companies that produce goods or services that are affected by economic trends. The prices of these stocks tend to go down when the economy is in a recessionary period and go up when the economy is healthy. Examples of cyclical stocks include airlines, automobiles, home building, and travel.

Defensive stocks are the opposite of cyclical stocks. Defensive stocks are issued by companies that produce staples such as food, drugs, and insurance products and usually maintain their value regardless of the state of the economy.