Chapter 12 Investing in Stocks 393 Characteristics of This Type of Investment Exhibit 12-3 ividuals who investments stocks offer Type of Stock A stock, issued by large, stable corporations with a history of pay- ing dividends, that generally attracts conservative investors. Classification of Stock Investments Blue chip issued less stock, as on ferred stock clares bank- ter creditors When evaluating a stock investment, investors often classify stocks into these ten A stock that follows the business cycle of advances and declines in the economy. A stock that remains stable during declines in the economy A stock issued by a corporation that has the potential of earning profits above the average profits of all firms in the economy. An investment that pays higher-than-average dividends. A stock issued by a corporation that has a large amount of capital- ization in excess of $10 billion. Large cap A stock issued by a company that has a capitalization of between $50 million and $300 million or less. Micro cap A stock issued by a corporation that has a capitalization of between $2 billion and $10 billion. A stock that typically sells for less than $5 per share (or in some cases, less than $1 per share) and has a small amount of capitalization. A stock issued by a company that has a capitalization of between $300 million and $2 billion. Also, Chapter 12 Investing in Stocks 393 Characteristics of This Type of Investment Exhibit 12-3 ividuals who investments stocks offer Type of Stock A stock, issued by large, stable corporations with a history of pay- ing dividends, that generally attracts conservative investors. Classification of Stock Investments Blue chip issued less stock, as on ferred stock clares bank- ter creditors When evaluating a stock investment, investors often classify stocks into these ten A stock that follows the business cycle of advances and declines in the economy. A stock that remains stable during declines in the economy A stock issued by a corporation that has the potential of earning profits above the average profits of all firms in the economy. An investment that pays higher-than-average dividends. A stock issued by a corporation that has a large amount of capital- ization in excess of $10 billion. Large cap A stock issued by a company that has a capitalization of between $50 million and $300 million or less. Micro cap A stock issued by a corporation that has a capitalization of between $2 billion and $10 billion. A stock that typically sells for less than $5 per share (or in some cases, less than $1 per share) and has a small amount of capitalization. A stock issued by a company that has a capitalization of between $300 million and $2 billion. Also