5 Types of shares based on trading performance

5 types of shares based on trading performance. Share is the smallest unit of share ownership owned by a person. Its form is a piece of paper issued by the company and states that the owner of the paper whose name is listed in the letter is the owner of the company according to the portion of what percentage or how much investment is invested in the company.

Holding shares in the capital market makes you own share ownership in a company (issuer). When you decide to buy shares, you buy a portion instead of lending money. As a result, you have the right to earn earnestly, dividends, and assets using company resources.

In other words, a share denotes the right size of investment while stock seems to be a broader concept that can be determined only with the help of shares.

Types of shares based on trading performance

There are several types of stocks based on certain categories. For example, stock types are based on claims, mode of switching, and trading performance. Shares are also commonly called stocks. So for the next, I use the term stocks in this article.

This time I will describe the types of stocks based on trading performance. Listen carefully.

Blue chip stocks

Blue chip stocks are a type of stock issued by companies with high reputations. Companies that issue shares of this one are usually industry leaders and have stable and consistent income in paying profit sharing. Blue chip stocks are also one of the favorite stocks and are sought after by investors because they come from companies that have a high reputation.

In addition, blue chip stocks are also leaders in their industry, have a stable income, and are consistent in paying dividends. Blue chip stocks have a capitalization of over US$ 673,282,790.

Investors who own blue chip stocks can also get stable dividends. The reason is that issuers that are included in the list are diligent in distributing dividends.

Income stocks

The next type of stock is income stocks or superior stocks which always pay dividends greater than the average dividend paid in the previous period. Due to this, owners of income stocks usually have income that is consistently increasing. Pretty interesting isn’t it?

Growth stocks

Growth stocks are a type of stock where the company’s revenue growth is always high, even though the company is not always a leader in the industry. These stocks are generally divided into two different categories, namely Well-Known and Lesser-Known shares.

Well-known shares are shares originating from high-ranking industry companies. Similar to blue chips, well-known stocks have high earnings growth, are leaders in similar industries, and are known as companies with high reputations.

In contrast, Lesser-Know share is a growth-stock stock of a less popular company. Although not a leader in a particular industry, lesser-known types of shares still have growth stock characteristics. Usually are shares of regional companies and are less popular among issuers.

Speculative stocks

Speculative stocks are a type of stock with high returns, however, they cannot provide consistent returns. This stock category is considered suitable for investors with a high-risk risk profile.

Those of you who like to take big risks can try this type of stock. This stock has the potential to generate high profits in the future, but cannot consistently generate income from year to year. Experienced investors usually own this type of stock to reap big profits.

Counter-cyclical stocks

Counter-cyclical stocks are a category of stocks that usually have the most stable conditions when the economic situation is volatile. This is true because this type of stock is not affected by economic and business conditions. However, the profit of counter-cyclical stocks will depend on the company that issued the shares.

After reading the explanation above, are you sure you choose stocks as a form of investment that you want to make? In order not to get confused and get new insights about stock investing, you can check out various reviews about stocks only at grosdestocks.org, a blog that provides all the info about stocks.

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