When you're trying to determine which stocks to buy, you should be aware of the different types of stocks. One might consider the grades, classifications, or categories of common stocks. These are: Blue Chip stocks, Growth Stocks, Income stocks, Cyclical stocks, Speculative stocks, and Defensive stocks. Keep in mind that these categories mean different things to different people.

This is an area best discussed with your registered representative or advisor, as they can shed light on the merits of each stock while providing you with pertinent data on the stocks, which will help you to classify them into a category you feel comfortable with.  At that time, using your risk profile and other factors, you can select areas you wish to be invested in.

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