Stock
market In a broad sense we call it as Capital market
which is the source of long term capital for the growth
of companies, a private or public market for the trading
of company stock and derivatives of company stock
at an agreed price; both of these are securities listed
on a stock exchange as well as those only traded privately.
Stock exchange is just the part of this big capital
market which allows complete transparency, liquidity
of investment. Investors have the cash readily available
for new investments. The main feature which is the
core of attraction than the banks and lending institutions
is the short term finance.
Playing or investing in stock market needs some technical
and fundamental analysis like informations of company,
prices of shares, dividends announced by the company,
growth rate etc....
Financial experts divide and place the companies into
the following groups by taking care of their number
of shares in the market and its future potential
-
Blue Chips : blue chip stocks
are mostly defined as companies whose stocks have
large market capitalization values . They are
valued by investors seeking relative safety and
stability, though prices per share are usually
high. Typically, such stocks are perceived to
offer reliable returns, low yield, and low risk.
Theses companies announced dividends even when
market is low so that investors have the options
to choose for the better investments.
-
Growth
Stocks : Shares of these companies grows
faster even subsets, these companies least times
announce the dividends but their return are not
high like blue chips companies. the share value
of these companies have high value and they maintain
their growth momemtum than inflation the overall
economy.
-
Income
stocks :This companies offers high return
on dividends. because of that investors have regular
income Shares of these companies use Mutual funds.
-
Defensive
stocks : Share values of these companies
remain stable which minimises risk when market
goes down. they helps in regaining the market
economy.
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