Acquiring Shares On Stock Exchange Market.

There are three (3) different kinds of shares in the stock market.

1. *Growth Stocks:*

As the name implies, growth companies by definition are those that have substantial potential for growth in the foreseeable future.

Every sector of the market has growth companies, but they are more prevalent in some areas, such as technology, alternative energy, and biotechnology. 

Most growth stocks tends to be newer companies with innovative products, that are expected to make a big impact on the market, in the future, though there are exceptions. For example; Amazon, when they started.

2. *Value Stock*

A value stock trades at a price below where it appears it should be, based on its financial status and technical trading indicators. It may have high dividend payout ratios or low financial ratios such as price-to-book or price-earnings ratios.

The stock price may also have dropped due to public perception regarding factors that have little to do with the company’s current operations.

For example, the stock price of a well-run, financially sound company may drop substantially for a short time period, if the company CEO becomes embroiled in a serious personal scandal. 

Smart investors know that this may be a good time to buy the stock, as there is a chance that the public will eventually forget about the incident and the price will possibly revert to its previous level.

3. *Income or Profit Stocks*

Investors look at income stocks to bolster their fixed-income portfolios with dividend yields that typically exceed those of guaranteed instruments, such as Treasury securities or CDs.

Although income stocks can be an attractive alternative for investors who are unwilling to risk their principal (funds), though their values can decline when interest rates rises.

*#Pause*

“Do you want a share of the *GROWTH*, or do you want a share of the *PROFIT?*”

This is one of the first questions I was asked by an advisor on the Stock Market. I was initially quite surprised because I did not know there was a difference!

“Think of it like this,” he explained. “Imagine you go to the Market where they sell live animals. You can buy a mature cow that will give you milk every day—that is what we call *DIVIDEND*, or you can buy a young calf that will increase in value as it grows—that is a *GROWTH Stock*..?”

He continued: “Dividend Stock is milk with no growth. It is for conservative types, and widows, but Growth Stock gives you a chance of making bigger money by selling the calf even as it grows up, and it can still produce many young, and milk later, but then again it can die on you, which is the risk.”

There is really no complication to these things, when you understand the underlying principles. 

Nigerian Stock Exchange operates on basically the same principles as our domestic Markets!

Now I am NOT going to tell you whether you should or should not invest on the Stock Market or which Stock you should pick. That is your job to do. 

Meanwhile, Mtn public shares openings are closing today, incase needs be for interested investors.

I am telling you this, just to equip you with financial education and the language of business. 

*As a serious #Entrepreneur, you must learn the language of business.