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In the Stock Market, equity shares are classified into the following categories:
1. Bluechip shares. These are shares of large, well-established and financially sound companies, e.g. Reliance, Larson & Toubro, Asian paints, and Infosys, which have an impressive record of earnings and dividend payments. Such shares yield a low-to-moderate current yield and moderate-to-high capital gains yield. Moreover, the price fluctuations also will be moderate.
2. Growth shares. These are shares of those companies which have a secured position in the market and enjoy an above average rate of growth and profitability. Growth shares generally provide a very low current yield and a very high capital gain yield. Very often growth shares are also bluechip shares.
3. Income share. The shares of companies that have fairly stable operations with relatively limited growth opportunities are income shares. Such shares provide a very high current yield and a very low capital gains yield. Such shares are fairly stable in the market. E.g. shares of power supply companies and tea companies.
4. Defensive shares. These are shares of companies that are relatively unaffected by the ups and downs in general business conditions. Generally, such shares provide moderate current yield and moderate capital gain yield. The price of these shares is relatively stable, e.g. shares of food and beverage companies.
5. Speculative shares. Those shares which tend to fluctuate mainly because of speculative trading in them are speculative shares.
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What is the difference between equity shares and mutual funds?
equity shares are stock market instruments that represent ownership. A person holding 10 stocks of XYZ limited owns a small % of the XYZ company. mutual funds are stock market instruments too but they invest in the equity shares that is explained above.
Meaning of equity shares and preference shares?
Equity share are ownership shares in a company. The term equity refers to all forms of ownership holdings. Preferred shares are a form of stock shares that come with voting rights and priority for dividends and distributions.
What is stock market trading?
A stock market or equity market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately..
What is a stock as in stock market?
Individual shares (ownership) in a company.
How do you buy stock in the company?
Stock (equity) can be bought during the original first public issue by a company and by the secondary market (stock market)
Are equity shares a money market instruments?
Equity shares are long term instruments and hence can not be a money market instrument. They are traded in a market known as stock market. The equity segment of the exchange is different from other markets such as debt market and money markets.
What is the difference between equity shares and mutual funds?
equity shares are stock market instruments that represent ownership. A person holding 10 stocks of XYZ limited owns a small % of the XYZ company. mutual funds are stock market instruments too but they invest in the equity shares that is explained above.
A company that sells shares in the stock market is involved in which type of financing?
Equity financing
What is the definition of 'equity market'?
In relation to stock-exchange, an equity market refers to a public entity through which company shares (or stock) is bought and sold depending on the basic economic principle of supply and demand.
What are the differences between foreign exchange market and equity market?
Foreign exchange (forex) is the global market of currency (money) , equity market (stock market) is the global market of shares (small pieces of large companies)
What is one disadvantage of equity financing?
It is significant for the individuals who truly need to create genuine gain and large sums really take a look at the connection in my CV as referenced above in light of the fact that it is totally free course...
Meaning of equity shares and preference shares?
Equity share are ownership shares in a company. The term equity refers to all forms of ownership holdings. Preferred shares are a form of stock shares that come with voting rights and priority for dividends and distributions.
Does commodity and equity stock market affect each other?
Yes. Commodity and equity stock market affects each other.
What is the meaning of stock marketing?
A stock market or equity market is a public (a loose network of economic transactions, not a physical facility or discrete) entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.
What is stock market trading?
A stock market or equity market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately..
What is the Indian Capital Market?
Capital market is a market for long-term debt and equity shares. In this market, the capital funds comprising of both equity and debt are issued and traded. This also includes private placement sources of debt and equity as well as organized markets like stock exchanges. Capital market includes financial instruments with more than one year maturity.
What is the regular definition for stock?
A Stock or Equity Shares are the most common form of stocks. "Equity" means ownership anybody who owns a share/stock of a company owns a portion of it.
