Shares of Common Stock represent ownership in a corporation. As a partial owner
of a corporation, the value of your shares generally depends upon how well the
corporation performs. If its business is doing well, with growing and increasing
profits, then the per share value of the stock will normally go up. On the other hand,
if the corporation does poorly, the value of the shares will probably drop. Stocks do
involve risk, but can provide the potential for impressive returns.
Some Common Stocks pay dividends or earnings from the corporate business. Other
corporations plow all their profits back into the corporation to make it grow. Because
of such characteristics, different Common Stocks are grouped into varied categories as
income-oriented stocks, growth stocks, blue chip stocks, utility stocks or high growth
stocks. Such categorization is based upon the company's past record only. It's no
guarantee of future performance.
Suggested Links for Additional Information on Stock
Types of Stock
(pages open in a second browser window)
An overview of common and prefered stock.
What is a Stock
An overview of stock in general.
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