December 8, 2022 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

What’s the Difference Between Blue Chip and Penny Stocks?

If you’ve been thinking of growing your wealth by getting involved with equities, shares, and securities, you’ve likely looked into the concept of stocks before. One of the most common tools for building wealth, these solutions are essentially securities which allow people to take ownership over a very small portion of a business. While common, these tools in the money-making landscape are often misunderstood. This is because there are so many different kinds of stocks and shares you can potentially invest in. Each option comes with its own pros and cons to consider, from preferred and dividend stocks to safe securities and blue-chip investments. Today, we’re going to be looking at two very different kinds of stocks you may need to be aware of when you’re building your own portfolio. 

What Are Blue Chip Stocks?

When you buy a stock, you’re essentially betting on the fact that a company will grow in size and value, making your investment in it more valuable too. While there are many ways to evaluate potential securities you may want to spend your money on, one of the most common options is to look at the history of the organization, its reputation, and background. Blue chip equities refer to the cream of the crop in the business landscape, often featuring companies which are well-known in their sector, and almost guaranteed to do well. While they might not provide the highest returns, they’re more likely to deliver the kind of stability many investors are looking for when they’re trying to grow their wealth without taking on much risk.

What Are Penny Stocks?

Almost the exact opposite to a blue chip, a penny equity is a low-cost solution in the market which you can buy for a very small price – often less than $5 per share. These investments are easy to get involved with, but they’re often considered somewhat dangerous because they build on speculative business models, and rarely have information to offer about the background company. These types of shares can give you a much faster level of growth, if you happen to have access to a list of the best penny stocks on the market with a stock watch list. However, you’ll need to be prepared to take on a higher level of risk with this kind of spending. 

Which Option is Best?

As with most things, there’s no one-size-fits-all method to buying the best equities for your investment portfolio. The right securities for you will depend on a number of factors, including how much risk you’re willing to take on. Notably, while blue chip options are often perceived as safer than their penny alternatives, this doesn’t guarantee you an increase in value for your securities either. With any kind of stock, you can just as easily lose or gain money, which is why it’s so important to have a diversified portfolio to help spread your risk. Making sure you consider all of your options carefully, and use your money intelligently will give you the best chance of success.

Related Posts

Cancer Cartel Provides Financial Help To Cancer Patients

November 16, 2022

November 16, 2022

Cancer Cartel is helping cancer patients focus on their treatment, not the financial stress of living with a diagnosis. Learn...

100 Miles of Bus-Only Lanes Within Five Years on City Council Plans

October 17, 2022

October 17, 2022

L.A’s public transportation network is known for being slow due to traffic congestion. A new motion by L.A. City Council...

How Do I Know What Types of Commercial Trucking Insurance Coverage I Need?

October 1, 2022

October 1, 2022

Running a small trucking company is expensive. You must comply with many rules set forth by the Federal Motor Carriers...

Best Ways To Show Your LA Baseball Love

August 10, 2022

August 10, 2022

Los Angeles is a sports lover’s paradise. In every sport except for the NHL, locals have two teams to choose...

Inspiring Others Through Body Positivity

May 13, 2022

May 13, 2022

Navy Officer Janae Carey Teams-Up with 2022 Herbalife24 Triathlon Los Angeles . Video brought to you by Pudu Pudu.

Best Gifts for Mother’s Day in 2022

March 31, 2022

March 31, 2022

Mothers are the first teachers children have in their lives. They simply teach us everything we need to know about...

LAPD Operations-West Bureau Commences Community Police Academy

March 2, 2022

March 2, 2022

Pacific Area Community Police Station hosting 11-week program Submitted by the Los Angeles Police Department On March 29, 2022, Operations-West...

LAFD Arson Unit Asks For Help Identifying Suspect In Venice Trash Fires

March 1, 2022

March 1, 2022

By Dolores Quintana After the multiple rubbish fires were set this weekend in Venice near Paloma Court there was a...

Critical Need for Blood Donations on the Westside

February 28, 2022

February 28, 2022

American Red Cross, UCLA Health continue to face a national blood emergency By Dolores Quintana  The American Red Cross continues...

Stunning Music Academy in Brentwood will celebrate its Grand Opening, Sunday, February 20th.

February 18, 2022

February 18, 2022

Introducing the second location of the highly successful Angeles Academy of Music, which has become an icon of Westwood Village.  ...

Cedars-Sinai Urges Blood Donations

January 11, 2022

January 11, 2022

As 2022 begins, Cedars-Sinai is facing a critical blood shortage and is encouraging prospective donors to give blood as soon...

US Motorcycle Helmet Laws Mapped

January 5, 2022

January 5, 2022

At YoVenice we have spent years writing about news stories of motorcyclists with head and brain injuries from collisions. We...

Interview: Westside Food Bank Adapting to Challenges of the Pandemic

January 4, 2022

January 4, 2022

An interview with Bruce Rankin, Executive Director of The Westside Food Bank By Dolores Quintana We spoke to Bruce Rankin,...

Yo! Venice’s Best Westside Dishes of 2021

December 28, 2021

December 28, 2021

By Sam Catanzaro Whether it’s breakfast, lunch, dinner or anytime in-between, the Westside has no shortage of world-class food to...