You can profit more by making smart decisions, such as voting for a smarter board of directors. Also, if you think that issuing additional stock may increase the value of the stock, then you would vote for issuing additional stock. Four Levels of Stock Penny stock is the lowest level of stock. Penny stocks are small companies that have almost no chance of making it big, and they are usually of no value. These stocks could be a local chain of stores, or a company that does not provide anything desirable.
Growth stock is the second level of stock.
Growth stocks are new companies that have a lot of potential for success, but they are not stable, and do not always become successful. These growth stocks are not always a safe investment, since they are not well- established. Secondary issues are well- established businesses that are almost totally insured to continue growing in strength. They are a good investment, since the profit can increase a lot, but finding the companies can be hard. Blue chip is highest level of stocks you can buy.