if a company traditionally pays out most its profits to its shareholders, it is generally called an income stock. The shareholders get income from the company's profits. If the company puts most of the money back into the business, it is called a growth stock. The company is trying to grow larger by increasing the amount of equipment and the number of people who run it.

income stock tends to stay fairly flat.

There are three big stock exchanges in the United States:

• NYSE - New York Stock Exchange
• AMEX - American Stock Exchange
• NASDAQ - National Association of Securities Dealers

Stocks that are not listed on an exchange are sold Over The Counter (OTC). OTC stocks are generally in smaller, riskier companies. Usually, an OTC stock is stock in a company that does not meet the requirements of an exchange.