The stock market has been an evergreen concept that attracts people of all age groups. However, it should be taken as a glamorous world that seems dazzling but requires deep diving for better understanding. If you are a newbie stock market fanatic who wants to learn from the basics, you arrived at your destination.
This blog comprises all the basic concepts of the share market. Delve deeper to gain more insights about the topic.
What is a stock?
In finance, stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. These investors own a percentage of the company’s every asset and are commonly known as shareholders or stockholders.
What is a stock market?
A stock/equity or share market is a combination of buyers and sellers of the stock. The market allows traders to buy and sell stocks and companies to issue shares.
Investment in the stock market is majorly done through stock-brokerage electronic trading platforms.
What are the different types of stocks?
The different types of stocks are as follows landprime:
1.Income stocks
Income stocks are stocks that provide a regular stream of income as dividends. Income stocks generally symbolise shares of companies with more mature business models and relatively fewer long-term opportunities for growth. Income stocks are commonly known as dividend stocks.
2. Cyclical stocks
Cyclical stocks are the stocks that swing as per the business cycle of an economy. It typically moves up or down depending on the economy. These stocks are traded massively as investors try to buy them at the low point of the business cycle and sell them at their peak price.
Cyclical stocks majorly include the share of the compani