SHARETIPSINFO >> Articles Directory >>10 Reasons to Like Stocks in stock market India
- Price – The price of the stock is predominant factor for liking a stock. If the price of the stock is rising steadily over a period of time then it is always wise to invest in that stock.
- Market capital – Market capital of the company is another determining factor for selecting the stock. It is always profitable to invest in the stocks that have huge market capital and posting profit year after year.
- Booming industry – it is profitable to select stocks of those industries that are booming. The rising companies of that sector will appreciate in the future and give good return.
- Blue chip companies – Investing in the stocks of the blue chip companies is always profitable. Even if the market is in bearish phase you can invest in these companies as they are all set to make profit in the future.
- Earnings – Earning of the company is actually the net profit of the company in a financial year. If a company is making steady profit year after year it is worth investing in that company.
- Debt – Debt of the company is the loan or financial responsibility of the company. The less is the debt, the better is the company. So invest in stocks where the debt is minimum.
- Asset – Asset of the company is the property of the company that gives an idea of the financial position of the company. If a company is having good amount of asset, it is better to invest in that company.
- Average P/E ratio – The average price per earning ratio is also a determining factor for the selection of stock. It gives you a clear idea of the demand of the particular stock in the stock market. A higher average P/E ratio means that the stock is much in demand and most likely to boom in the future.
- Average trading volume – Apart from the price of the stock the trading volume is also an indicator of the demand of the stock. If the trading volume of the stock is above the average trading volume then it is quite obvious that most of the investors are investing in that stock and hence it will appreciate in the future.
- Dividend – There are so many companies that offer dividends to its existing share holders. Through the dividends the companies actually distribute the profit amongst its share holders. If a company has the history of giving dividends it is better to invest in the company.
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