What is Stock Market and Types of stocks?

Stock market as we know is an aggregation or a group of buyers and sellers where exchange of securities is done via a stock exchange in this market there are so many companies listed or we can say that there stocks are listed in the National and bombay stock exchange list here are some of the types of stocks we are going to discuss stock tips are by various companies to the traders so that they can have more profit.

The first one is a Blue chip stock which is the stock of a well established and financially stable company the second one is called as secondary stock which is like a back up for the the company is not considered as blue chip, then the next one is income stock which focuses on the company which provides higher dividends, then another one is growth stock which is the stock of the company which is small but is believed to have a great growth in the near future.

Two Issues which are occured in the stock which are accommodated by the investors are common stock and preferred stock were the first one common stock is referred as it is the kind of stock which is purchased and sold regularly a common stock represents a part ownership in the company and which is described as a stock which is purchased while starting to trade. When any company’s value goes up then value of the stock also goes up and if value of company also goes down the value of the stock also goes down.

Then the second one is the preferred stock which is different from common stock in which owners of the stock get their dividend payments before the common stock owners and in which if the company goes out of business preferred stock owners get their payments which is left before the owners of common stock get paid. So the question arises here is that why everyone is not buying prefered stock the reason behind this is that companies do not issue preferred stock before the common stock. These are some of the types of stocks which are either purchased or sold in order to earn profit in the stock market.

Companies can also issue any number of different preferred stocks, or classes. Usually, the different kind of stock and each class can have a different price or dividend. These classes are highly flexible due to their similarities and differences to each other. This is necessary to accommodate the issuing company in time. For this reason, it is difficult if not impossible to provide a complete list of preferred stocks anywhere. As always, the responsibility of discovering the flaws of each class is left up to the investor.