1. Common Stocks
Shareholders can profit from the company’s profits if they possess common stock. The shareholder is also granted voting powers. Dividends are possible for shareholders who possess common stock in the corporation, but they are not guaranteed. Common stocks outperform all other types of shares in the long run.
2. Preferred Stocks
Preferred Stocks provide shareholders a small percentage of the company’s ownership. Preferred shareholders, on the other hand, are rarely given voting rights. Preferred stockholders are eligible for larger, guaranteed dividend payouts. Favored equities are less hazardous than common stocks since they are preferred during bankruptcy.
3. Hybrid Stocks
Hybrid Equities are preferred stocks with the ability to convert into a set number of common stocks at a set period. Convertible preferred shares are a popular term for hybrid stocks. They may or may not have voting rights because they are a combination of common and preferred shares.
MARKET CAPITALIZATION
1. Large-cap stocks
In India, large-cap stocks include Reliance Industries, HDFC Bank, TCS, and Infosys, among others. The term “blue-chip stocks” refers to large-cap stocks. Large-cap stocks have a low level of volatility and have a stable share price. Large-cap companies provide higher dividend yields than mid- and small-cap equities and are less risky. For conservative investors, large-cap stocks are ideal.
2. Mid-cap stocks
Companies are still in the early stages of development, mid-cap stocks provide larger returns. Mid-cap stocks are risky and only for the most daring investors. Mid-cap stocks also include so-called “baby blue-chip stocks,” which are companies with consistent growth but a small market size.
3. Small-cap stocks
Small-cap stocks are extremely volatile, and only experienced investors with a lengthy time horizon should consider them.
DIVIDEND PAYOUTS
1. Income Stocks
Dividend-yield stocks, often known as income stocks, are equities that pay out dividends on a regular basis. Income stocks offer predictable dividends and are less risky than other investments.
2. Growth stocks
Growth stocks rarely pay dividends since the business chooses to reinvest its profits in new ventures. Profits are reinvested to help the company grow quicker, which is why these companies are referred to as growth stocks.
RISK
1. Blue-chip stocks
Blue-chip stocks are those that belong to well-established businesses with consistent earnings and returns. These businesses have less liabilities, which allows them to pay dividends to their shareholders on a regular basis.
2. High Beta stocks
Beta is a risk metric, according to research specialists. Beta can be a positive or negative number. The stock and the market are moving in the same direction if the beta is positive. The stock and the market are moving in opposite directions when the Beta is negative.
If you want to learn more about stock market, you should enroll at some stock market analysis course, where you will get the chance to study in depth from industry experts.
About the Author- Gaurav Heera is a stock market analyst & trainer with many years of experience in the field. He also heads DelhiCourses, an institute known for its best Stock Market Course in Delhi.