It is easy for you to get confused when it comes to the stock market, especially when you are new to it. You can take the advice of an experienced financial advisor to help you. Experts in the field suggest you should have some fundamental knowledge of the market before you plunge into it. In this way, you can make wise and informed choices when it comes to investing in stocks.

Kavan Choksi Japan is a business expert with invaluable knowledge in investments and finance. According to him, several types of stocks are available in the market for your investment. However, the popular ones have been listed below: –

Common stock

This stock gives you voting right on important decisions in the company. It includes the election of board members or selecting other key policies that affect the business of the company. The owner of the stock gets dividends annually; this is the share of the company’s profits after its expenses in a year have been paid.

Preferred stock

Here, you do not get voting rights in the company but a bigger dividend over common stocks. In the event of liquidation of the company, owners of preferred stocks receive a higher priority when it comes to getting assets as well as dividends of the company.

Growth Stocks

Investors are able to monitor the growth in stocks after the exchange-traded funds or ETFs and SPYGs. As per their name, these stocks mean equities that will grow faster than their counterparts in the market. They outperform during the time when the economy grows and when the rates for interest are generally low during this phase. For instance, if you take a look at technology stocks over the past few years later, you will find they perform above your expectationsdue to a growing economy and access to cheap funds.

Value stocks

Investors are able to assess their performance over time. Value stocks generally trade at discounts to what the performance of the company may otherwise indicate, generally having inviting valuations in the market. These stocks like healthcare, finance, and energy have the tendency to outperform when the economy recovers as they generate consistentprofits as incomecomes in regularly.

Know your risks before you invest

According to Kavan Choksi Japan, it is very important for you to know about the stock you are about to invest in. Besides the stocks listed above, others like Blue Chip Stocks, ESG Stocks, Income Stocks, and more offer investors value for their money.

However, if you are new to the equities market, you must know about your risks, and it is here that you should take the guidance and counsel of an experienced financial advisor for your needs. It is important for you to understand your levels of risk for protection. Your individual portfolio will help you invest in the right stocks without hassles.