Investing 101 - 1.2

Stock Classification - Market capitalization is a common way to classify stocks, representing the total monetary value of a company's outstanding shares [2][3] - Large-cap stocks, with market capitalization greater than $10 billion, tend to be stable with lower volatility and high dividend yields [4] - Small-cap stocks, with market capitalization under $2 billion, have potential for rapid expansion but carry more risk [5] - Mid-cap stocks offer a balance between stability and growth opportunities [6] Investment Styles - Value stocks trade at a price below their intrinsic value, offering potential opportunities [8] - Growth stocks are expected to have rapid intrinsic value growth, justifying their current market price [9][10] - Dividend stocks are from established companies that distribute profits as dividends, providing a steady income stream [10][11] Investment Vehicles - Mutual funds are portfolios managed by professionals, offering diversification but with management fees [12][13][14] - ETFs (Exchange-Traded Funds) are static baskets of stocks, providing diversification without active management fees [14][15]