Many of us would like to try our luck in investing in share markets.yes ,why NOT? Trading stocks is one of the most lucrative methods of making money.
WHY ?
1. You do not need a lot of money to start making money, unlike buying property and paying a monthly mortgage.
2. It requires very minimal time to trade - unlike building a conventional business.
3.It’s ‘fast’ cash and allows for quick liquidation (You can convert it to cash easily,unlike selling a property or a business).
4. It’s easy to learn how to profit from the stock market.
Types of sectors:
There are various sectors in the share market. Some of the known sectors are Oil, Reality meaning RealEstate,Construction, Finance, Telecommunication, Refineries, Steel, Broking firms, Food and beverages, Metals, Jewelery, Packing, Consumer Goods etc. The best sector to invest is the decision taken by the investors understanding the fundamentals of a company turnover, volumes traded, balance sheet and so on.
Types of stocks
There are so many different types of stocks that are traded at the Indian stock market. These classifications of the stocks are done based on different aspects. Here we are presenting just some of the varieties of the stocks.
Stock classes
The class of the stock is the primary factor that is used for the classification. This class of stock is actually based on the voting rights of the shareholders. There are some stocks that do not let the shareholders vote at the annual meeting of the company to decide the company management and other issues. Then there are stocks that let the share holders to cast vote to take decisions in the company matters. Then there are certain stocks that give the shareholders a chance to cast multiple votes in different aspects of the company.
Market Capitalization
Stocks are also classified based on the market capitalization of the company. Market capital of a company is calculated by multiplying the current price of the stock of the company with the total outstanding shares of the company in the market. Stock types like Large Cap, Mid Cap, Small Cap and penny stocks are some of the examples of stock types that are done on the basis of the market capitalization of the company.
Sector Stocks – Stocks are also classified on the basis sector that the company is in. Stocks are grouped in according to the sectors like – banking stocks, realty stocks, IT stocks, steel stocks, oil stocks and so on.
Cyclic Stocks – Stocks that rise and fall according to the cyclic pattern of the market are called cyclic stocks. These stocks are highly sensitive to the market and respond quickly to the prevailing trend in the market.
Dividend Stocks – Stocks that give dividend to the shareholders on the regular basis are called dividend stocks. These companies give away some portion of the annual profit to the shareholders in the form of dividends.
