What Is Stock Market?Different types of Stock?

                       What Is Stock Market?

A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses; these may include securities listed on a public stock,
 Such financial activities are conducted through institutionalized formal exchanges (whether physical or electronic) or via over-the-counter (OTC) marketplaces that operate under a defined set of regulations



 Different Types of Stocks to Invest In: What Are They?

Most people are completely busy with their office their entire life. For those people, Investing in the stock market can be their second source of income. Through value appreciation and dividends, they can steadily grow additional income. That is why people need to start investing in the stock market.

  1. Common stock
  2. Preferred stock
  3. Large-cap stocks
  4. Mid-cap stocks
  5. Small-cap stocks
  6. Domestic stock
  7. International stocks
  8. Growth stocks
  9. Value stocks
  10. IPO stocks
  11. Dividend stocks
  12. Non-dividend stocks
  13. Income stocks
  14. Cyclical stocks 
  15. Non-cyclical stocks
  16. Safe stocks
  17. ESG stocks
  18. Blue-chip stocks
  19. Penny stocks


What is Common stock?
Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies. Common stock is reported in the stockholder's equity section of a company's balance sheet.




Example of common stock?

if a company declares a dividend of $10 million and there are 20 million shareholders, investors will receive $0.50 for each common share they own.

What is Preferred stock?

Preferred stock is a type of stock that offers different rights to shareholders than common stock. Preferred stockholders receive regular dividends and are repaid first in the event of a bankruptcy or merger.




  1. Large-cap stocks-

    Large-cap stocks are shares of the largest U.S. companies or those with market capitalizations of $10 billion or more. Large-caps are generally safer investments than their mid-and small-cap counterparts because the companies are more established, but their stocks may not offer the same potential for high returns.



    1. Mid-cap stocks-
    Mid-cap is the term given to companies with a market cap (capitalization)—or market value—between $2 billion and $10 billion. ... Mid-cap stocks are useful in portfolio diversification because they provide a balance of growth and stability.



    Small-cap stocks-

    A small-cap is generally a company with a market capitalization of between $300 million and $2 billion. Small-cap investors seek to beat institutional investors by focusing on growth opportunities. Small-cap stocks historically have outperformed large-cap stocks but are also more volatile and riskier.



    1. Domestic stock-

    2. Domestic stocks are the stocks of American companies traded on various stock exchanges. If their stocks trade on U.S. exchanges, it is through what is known as an American Depository Receipt (ADR). Domestic stocks range from the smallest of public companies to the largest of industrial conglomerates.


      International stocks-

      Stocks are financial assets that indicate ownership in a company. They are also known as equity shares or just shares. ... The international stock market refers to all the international markets that negotiate stocks from their domestic companies.




      1. Growth stocks-
        a growth stock is a stock of a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry.






      Value stocks-

      A value stock refers to shares of a company that appears to trade at a lower price relative to its fundamentals, such as dividends, earnings, or sales, making it appealing to value investors. A value stock can generally be contrasted with a growth stock.




      IPO stocks-(
      Initial public offering)

      An initial public offering or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also retail investors. An IPO is typically underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.




      Dividend stocks-
      A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it can pay a proportion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business.



      Non-dividend stocks-

      Companies that don't pay dividends on stocks are typically reinvesting the money that might otherwise go to dividend payments into the expansion and overall growth of the company. This means that, over time, their share prices are likely to appreciate in value.


      Income stocks-

      Income stocks are stocks that offer regular and steady income, usually in the form of dividends, over a while with low exposure to risk.



      1. Cyclical stocks -

        A cyclical stock is a stock that's the price is affected by macroeconomic or systematic changes in the overall economy. ... Most cyclical stocks involve companies that sell consumer discretionary items that consumers buy more during a booming economy but spend less on during a recession.



        Non-cyclical stocks-

        Non-cyclical stocks, or defensive stocks, comprise businesses that operate in industries that do well regardless of what the overall economy is doing. This is because these businesses offer essential goods, such as utilities. ... But consumers always need utilities such as water, electricity and gas.


        Safe stocks-

        The most seasoned and fundamentally sound bluechips, led by the most credible and ethical managements. Obviously, all large companies and index stocks do not qualify.


      2. ESG stocks-
        The expression is used synonymously with sustainable and socially responsible investing. While selecting a stock for investment, an ESG fund shortlists companies that score high on the environment, social responsibility, and corporate governance, and then looks at financial factors.




      1. Blue-chip stocks-

        A blue-chip is stock in a stock corporation with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times.



        Penny stocks-

        Penny stocks are common shares of small public companies that trade for less than one dollar per share.



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