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This is the Best Type of Stock Investment that Beginner Investors Should Know

Rtvassen.comThis is the Best Type of Stock Investment that Beginner Investors Should Know – The increasing cost of living needs that must be met and the decreasing amount of income from the Covid-19 pandemic effect. Making most Indonesian people direct their attention to stock investment as a way to increase their income.

However, the many variations of the stock itself make investors hesitate to make a choice. Especially for potential investors or novice investors who have never been in the investment world. For that, in order not to make the wrong choice, pay attention to several types of stocks that you should know.

Blue Chip Stock

The first type of stock on the stock exchange is the Blue Chip. This stock is believed to have an ROI (Return on Investment) level and a fairly stable profit. The characteristics of stocks with this type of Blue Chip include:

  • The market capitalization value is quite large.
  • Old player in his sector.
  • Consistent annual growth.
  • Annual financial reports tend to be stable.

Seasonal Stock

This second type of stock fluctuates in value according to certain seasons. For example, extreme weather conditions, school holidays, and others. When the season arrives, the stock price will increase. However, if the season is over, the stock price has the opportunity to decline.

Features of Seasonal Stocks:

  • It really depends on the particular season.
  • Can be predicted earlier.
  • The level of profit is less than the maximum.

Stocks Grow

These third stocks are called growing stocks, namely stocks with the highest growth category compared to other stocks in one sector. This happened because of the high public demand for the shares so that the price rose significantly.

Characteristics of growing stocks:

  • Net profit increased significantly every year.
  • There are indications that growth will continue even though economic conditions tend to be unstable.

Cyclic Stock

The fourth stock is a stock with a growth system according to their respective times or cycles. If the cycle is in good condition, then the stock price will increase slowly, and vice versa.

Those are the four types of stock investments that you should know before deciding to become an investor. As a suggestion, consider carefully and choose the type of stock that you can manage independently.

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