General Stock Market Investment Strategies - Other


1) Board of Directors: A group of people which are elected as, or elected to act as, representatives of the stockholders to establish corporate management associated policies and to create decisions on main business issues. Such issues include the hiring/firing of executives, dividend policies, choices policies and executive compensation. Every public business must have a Board of Directors.

2) Dividends: Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the rupees amount every share receives (i.e. dividends per share or DPS). It can also be quoted in terms of a percent of the present market cost, referred to as dividend yield. Most secure and stable companies offer dividends to their stockholders.

3) Growth Stock: A stock that experiences a continued period of growth exceeding that in the economy. Usually, the duration is over a year in length.

4) Speculative Stock: Stocks that offer the possible for substantial cost appreciation, generally because of some special situation like new management or the introduction of a promising new product.

5) Large-cap stocks: are large-sized companies, usually with market values of more than $1 billion.

6) Mid-cap stocks: are medium-sized companies, usually with market values of much less than $4-$5 billion but much more than $1 billion.

7) Small-cap stocks: are stocks that usually have marketplace values of much less than $1 billion but can offer above-average returns.

8) Par Value: A dollar amount that's assigned to a security when representing the value contributed for each share in cash or goods. 9) Book Value: the value of the equity in the firm divided by the amount of shares outstanding.

10) Liquidation Value: the value obtained for selling all of the assets in the corporation on the auction block.

11) Market Value: the current market price of the stock occasions the amount of shares outstanding.

12) Investment (Intrinsic) Value: the value in the corporation based on discounted money flow analysis and also the revenue generating capacity in the firm.


1) The Bull Market is when every thing within the economy is excellent, people are finding jobs, gross domestic item (GDP) is growing, and stocks are rising.

Bull markets can't last forever though, and occasionally they can result in harmful scenarios if stocks turn out to be overvalued. If an individual is optimistic and believes that stocks will go up, he or she is called a "bull" and is stated to have a "bullish outlook".

2) Bear Market characterize the attitude of investors who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are usually pessimistic concerning the state of a given market. Bearish sentiment may be applied to all kinds of markets including commodity markets, stock markets and the bond market.