Q & A (Stock Market ) for Beginners.

How can I use options trading to hedge my positions and manage risk?

Option doesn't work like a derivative or cash calls . If the proper volume is not there, then both the CE ad PE calls will get decayed and will be made zero. Avoid the option if you don't know how to study volume. option works on volume. Option needs more discipline way of trading. or else you will loose money in no time.

Stock Market: Types of Stocks

 

Types Of Stocks:

There are several types of stocks that investors can choose from, including:

Common stock: This is the most common type of stock and represents ownership in a company. Common stockholders have voting rights and may receive dividends if the company generates profits.

• Tata Consultancy Services (TCS)
• Reliance Industries Limited (RELIANCE)
• HDFC Bank Limited (HDFCBANK)

Preferred stock: Preferred stock is a type of stock that pays fixed dividends, and the dividends have priority over dividends paid to common stockholders. Preferred stockholders do not usually have voting rights.

• Housing Development Finance Corporation Limited (HDFC)
• ICICI Bank Limited (ICICIBANK)
• Infosys Limited (INFY)

Growth stock : Growth stocks are stocks in companies that are expected to grow at a faster rate than the overall market. These companies reinvest earnings into their business rather than paying dividends to shareholders.

• Bajaj Finserv Limited (BAJAJFINSV)
• HDFC Bank Limited (HDFCBANK)

Value stock : Value stocks are stocks in companies that are priced lower than their perceived worth based on their earnings, sales, and assets. Value investors look for undervalued stocks that they believe are poised for growth.

• State Bank of India (SBIN)
• Bharat Petroleum Corporation Limited (BPCL)
• Oil and Natural Gas Corporation Limited (ONGC)

Income stock : Income stocks are stocks in companies that pay a regular and reliable dividend. These stocks can provide a steady stream of income to investors.

• Housing Development Finance Corporation Limited (HDFC)
• ITC Limited (ITC)
• Tata Steel Limited (TATASTEEL)

Blue-chip stock: Blue-chip stocks are stocks in established and well-known companies that have a strong track record of stability and growth.

• Reliance Industries Limited (RELIANCE)
• Tata Consultancy Services Limited (TCS)
• HDFC Bank Limited (HDFCBANK)

Cyclical stock: Cyclical stocks are stocks in companies whose profits are tied to the ups and downs of the overall economy. These stocks can be more volatile and riskier than other types of stocks.

• Bajaj Auto Limited (BAJAJ-AUTO)
• Mahindra & Mahindra Limited (M&M)
• Tata Motors Limited (TATAMOTORS)

Defensive stock: Defensive stocks are stocks in companies that are less affected by economic cycles and  provide a stable return.

• Housing Development Finance Corporation Limited (HDFC)
• ITC Limited (ITC)
• Procter & Gamble Hygiene and Health Care Limited (PGHH)

Please note that this is not an fixed  list and the classification of a stock  can change over time. It is important to do thorough research before making any investment decisions.