human
What are the different types of stocks I should consider buying?
assistant
1. Common stocks: These are the most traditional type of stock and represent ownership in a company.
2. Preferred stocks: These provide stockholders with preferential treatment with respect to dividends and other rights as compared to common shares.
3. Exchange-traded funds (ETFs): ETFs allow investors to purchase a bundle of stocks that track a particular index.
4. Options: These are contracts that give buyers the right to buy or sell certain stocks at a specific price.
5. Mutual funds: These are professionally managed portfolios of securities that diversify risk.
6. Real estate investment trusts (REITs): These enable individuals to invest in large-scale, income-producing real estate.