which company are coming under these names mid cap, blue chip, capital goods, etc?

hello i am new in share market. i wanna some information. in mutual fund what is growth option and dividend option. what’s diffrent between ipo, equity and share i wanna buy upcoming relience power ipo. some body told me first i have to pay 100 thousand to invest in ipo then your investment money it is right please give me some detail information
thank you

3 Replies to “which company are coming under these names mid cap, blue chip, capital goods, etc?”

  1. Unless you do hundreds of thousands of dollars of business with the brokerage firm or investment bank that brings out the IPO, it is unlikely even with 100k that you will get a piece of the action.
    There are many companies or mutual funds with have the names mid cap, blue chip, capital, etc.

    As to the rest of your question, books are written on some of the subject(s). Check out Investopedia on the answers investing page.

  2. To tell u about the stocks that come under the categoris of midcap, blue chip etc u need to tell us which country u belong to coz it differs from country to country.
    U have asked too many questions dude…well ill start explaining one by one :
    Stock means :
    A type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings.

    There are two main types of stock: common and preferred. Common stock usually entitles the owner to vote at shareholders’ meetings and to receive dividends. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event that a company goes bankrupt and is liquidated.

    Also known as “shares” or “equity”.

    A holder of stock (a shareholder) has a claim to a part of the corporation’s assets and earnings. In other words, a shareholder is an owner of a company. Ownership is determined by the number of shares a person owns relative to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company’s assets.

    Stocks are the foundation of nearly every portfolio. Historically, they have outperformed most other investments over the long run.

    Share means:
    unit of ownership interest in a corporation or financial asset. While owning shares in a business does not mean that the shareholder has direct control over the business””””””””s day-to-day operations, being a shareholder does entitle the possessor to an equal distribution in any profits, if any are declared in the form of dividends. The two main types of shares are common shares and preferred shares.

    In the past, shareholders received a physical paper stock certificate that indicated that they owned “x” shares in a company. Today, brokerages have electronic records that show ownership details. Owning a “paperless” share makes conducting trades a simpler and more streamlined process, which is a far cry from the days were stock certificates needed to be taken to a brokerage before a trade could be conducted.

    While shares are often used to refer to the stock of a corporation, shares can also represent ownership of other classes of financial assets, such as mutual funds.

    Equity Means :
    1. A stock or any other security representing an ownership interest.

    2. On a company’s balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as “shareholders’ equity”.

    3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.

    4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.

    5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor’s portfolio.

    The term’s meaning depends very much on the context. In general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner’s equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company.

    Penny Stock :

    A stock that trades at a relatively low price and market capitalization, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They will often trade over the counter through the OTCBB and pink sheets.

    The term itself is a misnomer because there is no generally accepted definition of a penny stock. Some consider it to be any stock that trades for pennies or those that trade for under $ 5, while others consider any stock trading off of the major market exchanges as a penny stock. However, confusion can occur as there are some very large companies, based on market capitalization, that trade below $ 5 per share, while there are many very small companies that trade for $ 5 or more.

    The typical penny stock is a very small company with highly illiquid and speculative shares. The company will also generally be subject to limited listing requirements along with fewer filing and regulatory standards.

    Micro Cap :
    Companies with market capitalizations between $ 50 million and $ 300 million.

    A micro-cap stock isn’t the smallest classification – nano cap is even smaller.

    Keep in mind that classifications such as “large cap” or “small cap” are only approximations that change over time. Also, the exact definition of these terms can vary between brokerage houses.

    Small cap:

    Refers to stocks with a relatively small market capitalization. The definition of small cap can vary among brokerages, but generally it is a company with a market capitalization of between $ 300 million and $ 2 billion.

    One of the biggest advantages of investing in small-cap stocks is the opportunity to beat institutional investors. Because mutual funds have restrictions that limit them from buying large portions of any one issuer’s outstanding shares, some mutual funds would not be able to give the small cap a meaningful position in the fund. To overcome these limitations, the fund would usually have to file with the SEC, which means tipping its hand and inflating the previously attractive price.

    Keep in mind that classifications such as “large cap” or “small cap” are only approximations that change over time. Also, the exact definition can vary between brokerage houses.

    Mid cap :
    A company with a market capitalization between $ 2 and $ 10 billion, which is calculated by multiplying the number of a company””s shares outstanding by its stock price. Mid cap is an abbreviation for the term “middle capitalization”.

    As the name implies, a mid cap company is in the middle of the pack between large cap and small cap companies.

    Keep in mind that classifications such as large cap, mid cap and small cap are only approximations that change over time. Also, the exact definition of these terms can vary among the various participants in the investment business.

    Large cap :
    An abbreviation for the term “large market capitalization”. Market capitalization is calculated by multiplying the number of a company’s shares outstanding by its stock price per share. The expression “large cap” is used by the investment community as an indicator of a company’s size. For example, a large-cap stock would be from a company with a market-capitalization dollar value of over $ 10 billion.

    Large-cap companies are the big kahunas of the financial world. Examples include Wal-Mart, Microsoft and General Electric. Stocks such as these are also sometimes called “mega caps”.

    Keep in mind that the dollar amounts used for the classifications “large cap”, mid cap”, or “small cap” are only approximations that change over time. Among market participants, their exact definitions can vary.

    Blue chip means :
    A nationally recognized, well-established and financially sound company. Blue chips generally sell high-quality, widely accepted products and services. Blue-chip companies are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

    The name “blue chip” came about because in the game of poker the blue chips have the highest value.

    Blue-chip stock is seen as a less volatile investment than owning shares in companies without blue-chip status because blue chips have an institutional status in the economy. The stock price of a blue chip usually closely follows the S&P 500.

    IPO means :
    An Initial Public Offering (IPO) –is the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.

    In an IPO, the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.

    Also referred to as a “public offering”.

    Mutual Fund means :
    A mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.[1] In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund’s underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding.

    Growth fund:
    A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. Portfolio companies would mainly consist of companies with above-average growth in earnings that reinvest their earnings into expansion, acquisitions, and/or research and development.
    Most growth funds offer higher potential capital appreciation but usually at above-average risk. Growth funds are more volatile than funds in the value and blend categories. The companies in a growth fund portfolio are in an expansion phase and they are not expected to pay dividends. Investing in growth funds requires a tolerance for risk and a holding period with a time horizon of five to 10 years

    Dividend fund or dividend option in a fund :

    It is a fund in which the dividend earned is returned to you…there are other options like Dividend reinvestment option where..the dividend earned by the mutual fund is in turn invested in the fund(where more units are bought).

    coming to the Reliance power IPO..the date is not clear…it will be in January…and the investment in the ipo need not be up to the level of 100 thousands..its a false information…
    but for retail investors there will be certain limit..that is minimum and maximum amount of shares to invest…but it will not be to the extent of 100 thousand….
    Hope i provided u with necessary information…
    i wish u good luck…
    Happy investing…!!!!!!!!

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