Are certain common stocks riskier than others?
Yes! Stocks of young, growth-oriented companies tend to be riskier than those of the so-called blue-chip companies, which have established themselves over good and bad business and economic cycles. Younger, riskier stocks generally pay little or no dividend because the companies often choose to reinvest that money in expansion, equipment, and research and development. Of course, along with the risk comes the possibility of rapid growth.
