Six Different Types Of Stocks You Must Know As an Investor
The stock market has changed the lives of millions of people in today’s world. There are a variety of ways in which you can invest in the stock market. Before stepping into the stock market you must know the basics of stocks before choosing the right one for your type of investment.
Here are the six different types of stock you must know.
Bluechip Stocks
These are the stocks of well-established companies. They are very large and well-established and are considered profitable.
India's leading blue chip companies today are State Bank of India (SBI), Bharti Airtel, Tata Consultancy Services (TCS), Coal India, Reliance Industries, HDFC Bank, ONGC, ITC, Sun Pharma, GAIL (India), Infosys, and ICICI Bank.
Income Stocks
These are stocks that pay regular dividends to the stock owner. These are stocks that consistently keep growing and paying dividends even in good and bad markets.
Some of the examples of Dividend stocks are REC, SAIL, and PFC.
Growth Stocks
These are stocks that are expected to grow. These stocks grow are anticipated to grow at a rate higher than the average market cyclical. Growth stocks vary from time to time, from country to country, and the state of the market. You will have to make a good amount of research before choosing the right growth stock to invest in.
Penny Stocks
Penny stocks are stocks that are available for very less price mostly less than a dollar or with a very less amount in Indian currency.
Cyclical Stocks
These are stocks that are affected by the overall changes in the economy. Like, will go up during a bull market and go down during a bear market.
Defensive Stocks
A defensive stock is a stock that provides consistent dividends and stable earnings regardless of the state of the overall stock market.
