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Shares: Standard Values and Second-Tier Stocks

Article by Never Rich Enough | 04/05/2012 at 20:55

On the stock market we can distinguish between standard values and second-tier values, in which the shares can be divided.

Standard Values

Standard values (or blue chips) are high-volume stocks with a high value that are also listed in the relevant international indices like the Dow Jones or the DAX.

Second-Tier Stocks 

All other papers are second-tier stocks characterized by a relatively small market capitalization and lower sales. Within these low values we can still differ between mid caps, small caps and micro caps.

  • Mid Caps have a medium-high value and can still be listed in indexes such as the MDAX on the stock market.
  • Small Caps have a little value and only some of them are represented in indexes such as the SDAX, for example.
  • Micro Caps are not listed in an index and they have a very low value. This category includes penny stocks, for instance.

There is no binding and accepted criteria how to assign shares to one of these categories.

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