Types of shares

Types of actions There are different types of shares that can be traded on the Stock Exchange. Each type of stock has specific characteristics and it is important to understand these differences before investing. Below are some of the main types of actions: Common shares: Common shares are the most common and represent ownership of a part of the company. Shareholders with common shares are entitled to vote at general meetings of the company and are also entitled to receive dividends when the company distributes profits. Preferred shares: Preferred shares entitle shareholders to certain privileges over common shares. Shareholders with preferred shares have preference in receiving dividends and reimbursement of capital in the event of liquidation of the company. However, they generally do not have voting rights. Growth stocks: Growth stocks are those of companies with growth potential above the market average. These companies often reinvest their earnings to grow their business, and as a result, the value of the shares can increase significantly over time. Value stocks: Value stocks are those of companies that are considered undervalued by the market. Investors who buy value stocks believe that the stock price will recover in the future, generating profits. Blue-chip shares: Blue-chip shares are shares of recognized and established companies in the market. These companies are usually industry leaders and have a consistent track record of performance. Blue-chip stocks are considered less risky and are often chosen by investors looking for stability and security. Dividend stocks: Dividend stocks are those of companies that have a policy of regularly distributing profits through dividends. Investors looking for steady income often invest in dividend stocks, as these companies often pay consistent dividends over time. Small company stocks: Small company stocks, also known as small caps, are stocks of companies with a smaller market capitalization. These companies generally have a higher growth potential, but they are also riskier due to their lower financial stability. Large Company Stocks: Large company stocks, also known as large caps, are stocks of companies with the highest market capitalization. These companies usually have a solid market position and are considered more stable and secure. It is important to point out that the choice of type of share depends on the profile of each investor and their financial objectives. In addition, it is essential to carry out a careful analysis before investing in any type of stock, considering factors such as the company's historical performance, growth prospects, risks involved and diversification of the investment portfolio.

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