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Different Types of Stocks

Common stock :Represent the ownership in the company and their holders have the right to claim a portion of profits. Preferred stock : Preference of ownership in the company.Investors are guaranteed a fixed dividend.The company has the option to purchase the shares from the shareholders.

Income stock :Those which have an elongated and prolonged record of paying high dividends.Company usually comes from a stable and matured industry. Growth stock:Those stocks that can be expected to experience high rates of growth in operations or earnings.These growth rates are to a large extend higher than the market averages.

Value stock :The stocks of those companies which are considered as undervalued because they may be in an industry that is out of favour.These stocks tend to have lower earnings and price to book ratios. Cyclical stocks:The stocks of companies that follow a business cycle.Industries are oil and natural resources,steel, cement,housing etc.

Defensive stock: Stocks that are counter cyclical.The prices remain constant or may rise during the periods of economic downturn .They are well established companies. Blue chip stocks: Companies with highest overall quality.Financially stable and steady dividend supplier

New York Stock exchange

Dates back to 1792,when 24 prominet brokers and merchants gather on wall street to sign an agreement for trading of securities. In 1817 NewYork brokers established New York Stock and Exchange Board Membership in NYSE became exchangeable in 1863. Dow Jones Industrial average. S&P 500 and NYSE composite index.


National Association Security Dealers and Automatic Quotes. World's first electronic market incorporated in 1971. NASDAQ composite.