投资学全英文ppt7.ppt

Types of Stock (cont’d) Income Stocks: stocks with long and sustained records of paying higher-than average dividends Good for investors looking for relatively safe and high level of current income Dividends tend to increase over time (unlike interest payments on bonds) Some companies pay high dividends because they offer limited growth potential More subject to interest rate risk Examples: Duke Energy, Conagra Foods, General Mills, Altria Group Types of Stock (cont’d) Growth Stocks: stocks that experience high rates of growth in operations and earnings Have sustained rate of growth in earnings above general market Investors expect higher price appreciation due to increasing earnings Riskier investment because price may fall if earnings growth cannot be maintained May include blue chip stocks as well as speculative stocks Typically pay little or no dividends Examples: Amazon, Apple, Google, eBay, Berkshire Hathaway, Starbucks Types of Stock (cont’d) Tech Stocks: stocks representing the technology sector of the market Range from speculative stocks of small companies that have never shown a profit to blue chip stocks of large companies that are growth-oriented Potential for attractive returns Considerable risk and volatility Difficult to put value on due to erratic or no earnings Examples: Microsoft, Cisco Systems, Yahoo!, NVIDIA, SanDisk, Intel, Electronic Arts Figure 6.6 A Tech Stock (Source: Copyright ?2012 Zacks Investment Research. All rights reserved. , July 10, 2012.) Types of Stock (cont’d) Speculative Stocks: stocks that offer potential for substantial price appreciation, usually due to some special situation such as a new product Companies lack sustained track record of business and financial success Earnings may be uncertain or highly unstable Potential for substantial price appreciation Stock price subject to wide swings up and down in value Examples: Sirius XM Radio, Dreamworks Animation, Liberty Media, Under Armour Types of Stock (cont’d) Cyclical Sto