Stocks: –
Stock (also known as equity) is a security that represents ownership of a share of a company. It entitles the owner of the stock to a ratio equal to the assets of the company and the profit of the stock they hold. A unit of stock is called a ‘share’.
Stocks are primarily bought and sold on stock exchanges, although they are also sold privately and form the basis of many individual investors’ portfolios. These transactions have to comply with government regulations that are intended to protect investors from fraudulent practices. Traditionally, they have outperformed most other investments over the long term. These investments can be purchased from most of the online stockbrokers.
Companies issue (sell) stock to raise funds to operate their businesses. The holder of the stock (shareholder) has now purchased a piece (or share) of the company and may have a claim on a portion of the company’s assets and income, commensurate with the type of share held. Ownership is determined by the number of shares owned by that individual in proportion to the number of shares outstanding. The stock holders do not become the owners of the company, they own the shares issued by the company.
There are mainly four types of stocks
- Value Stock
- Growth Stock
- Dividend Stock
- Cyclical stock
Now you will know the types of stock 1st is Value Stock
-Discounts are available in value stocks, which they discount even in the price they are fixed, and sometimes the company also gives a discount on its profit at the value stop, meaning some part of its profit is distributed to its shareholder as Dividend. it is called value stock
2nd is Growth Stock
-The company which maintains profit continuously or the profit is less is called growth stock. Such a company is able to manage its profits continuously, whether the Dividend stock in such a company is low or not, it is not certain whether such a company will give Dividend to its stock holder or not and as such Stocks are the most risky means Growth stocks have the highest risk.
3rd is Dividend Stock
-The company generates the profit amount; the company distributes some part of its profit to its share holders.
4th is Cyclical Stock
-The profit of the cyclic company is linked with the economic, if the economics is good then the profit will also be good for the company and if the economic is bad then the company will not profit. The cyclical stock is linked to this.
There are other two types of stock (It is also very good for you)
1st is Blue chip Stocks (Blue chip stocks are the stocks of those companies which are leaders in their sector and have large capital. Blue chip stocks are reliable and investors’ first choice. Because this stock is capable of earning profit regularly. It can be more profitable if invested in blue chip stocks for a longer period of time.
2nd is Penny Stock (Penny means money. Those stocks whose value is very low (i.e. from Re 1 to Rs 35) and the market capital does not exceed 100 crores are called penny stocks. Investing in penny stocks is not considered safe; these stocks carry a lot of risk).
www.yonoinformer.com
