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Types Of Stocks In The Stock Market 

Dividend Stocks 

They Pay high and consistent dividends each year. But they do not promise very high growth as they are matured in their industry. Also known as income stocks. They pay regular dividends. Example dividend stocks in India Coal India, Ambuja Cement, Gail India limited Etc.

Growth Stock 

They do not pay high dividends as the company reinvests the earnings in its own business to grow further.  Due to growth in the company, its stock price increased rapidly. Grows rapidly in value and stock price. Examples in India as Tata Elxsi, Relaxo Footwear Etc. 

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Defensive Stock

These stocks are unaffected by economic conditions. These Stocks have continual demand for their business or products regardless of the performance of the share market. Defensive stocks example HUL, Dabur Etc.

Blue-chip Stock

They have stable earnings and they also pay regular dividends.  These are very large and well-recognized companies with a history of sound financial performance. For Example blue-chip stocks India - Asian paints, TCS, Maruti Suzuki.

Cyclic Stocks

These are Greatly affected by the economic conditions of a country. They grow rapidly during the boom cycle but the growth is slowed down in the slow economy. Not to be invested by new investors. Examples of cyclical stocks - HEG, ESCORT.

Penny Stock

Generally, a Price between 0.1 to RS.20 is considered a penny stock. These are highly risky, illiquid, and Lesser known to the public.  Considered a lottery. No analysis works here. Investors may win big or lose all. Examples of  Penny stocks in  India- Vi, Suzlon, Yes bank.

According To Market Cap 1. Small Cap

These are small companies with a market cap of less than RS. 5000 crore.  They are not known to a wider public and have the potential to grow faster.  Can become  multi-bagger in a short span of time, if performed well

Mid Caps 

These are moderately larger companies than Small caps.  The market cap is more than RS. 5000 crore but less than RS. 20000 crore Has the potential to become even bigger. 

Large Caps

These are well-established businesses and have a significant market share in their industry Market Cap of more than RS. 20000 crore is Considered as safe investments.