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Lesson 5. The Five Types of Stock > Stock Characteristics - Pg. 26

The Five Types of Stock 26 · Income stocks are those whose primary focus is to provide regular and higher dividend pay- ments. · Growth stocks are stocks that pay little if any dividends, choosing instead to increase capital gains by reinvesting profits to grow the business. · Penny stocks are characterized by their low prices and extreme price fluctuations, best avoided by novice investors.