*Full-service - initiates initial public offering of a stock. Big names like Bank of America, Goldman Sachs, Morgan Stanley, etc.
*Discount - do not conduct IPO, only handles buy and sell orders and charges low commission to do the trades. Companies like Charles Schwab, E*Trade, Fidelity, Scottrade and TD Ameritrade
Super DOT - a computerized order-routing and reporting system that completes the trading loop in seconds used at NYSE
Growth Investing:
**Investors look for companies that are sales and earnings machine. Companies that launches new product, breakthrough patent, expansions and excellent management. Key measurements are earnings and recent stock price strength. Dividends are not very important. Minimum growth criteria is at least 20% a year and pushing new highs in stock price.
Value Investing:
**Investors look for stocks on the cheap. The idea is that if you don't pay too much for what you get, there's less chance of losing money. Value stocks have low P/E ratios and low price-to-book ratios. Investors are bargain hunters and pay attention to dividends. Dividend yield is a great indicator of how bargain priced a company is.
Growth Investing:
**Investors look for companies that are sales and earnings machine. Companies that launches new product, breakthrough patent, expansions and excellent management. Key measurements are earnings and recent stock price strength. Dividends are not very important. Minimum growth criteria is at least 20% a year and pushing new highs in stock price.
Value Investing:
**Investors look for stocks on the cheap. The idea is that if you don't pay too much for what you get, there's less chance of losing money. Value stocks have low P/E ratios and low price-to-book ratios. Investors are bargain hunters and pay attention to dividends. Dividend yield is a great indicator of how bargain priced a company is.
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