TYPES OF STOCKS
When share prices rise, everyone wants to know what share to buy. Investors are keen to be a part of the wealth creation process. Stock markets are engines of economic growth for a country. A vibrant stock market is essnetial for a country like India. There are multiple ways an investor could participate. HOW ARE STOCKS CLASSIFIED Stocks can be classified into multiple categories on various parameters – size of the company, dividend payment, industry, risk, volatility, as well as fundamentals. · Stocks on the basis of ownership rules: This is the most basic parameter for classifying stocks. In this case, the issuing company decides whether it will issue common, preferred or hybrid stocks · Preferred & common stocks: The key difference between common and preferred stocks is in the promised dividend payments. Preferred stocks promise investors that a fixed amou...