Types of Stocks: Growth, Value, Dividend, IPO

Learn the basics of growth, value, dividend, and IPO stocks and why each type fits a different investing style.

Not all stocks grow or behave the same. Each type fits a different investing style.

Main categories

  • Growth stocks: Companies expected to expand quickly. Profits are usually reinvested instead of paid out.

  • Value stocks: Companies trading below their true worth. Often more stable, sometimes pay dividends.

  • Dividend stocks: Mature companies that share regular income with investors.

  • IPO stocks: Newly public companies offering shares for the first time. Can bring higher potential and higher risk.

Bottom line

Know what you’re buying and why. Growth builds wealth, value adds stability, dividends pay income, and IPOs bring excitement, but risk too.