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Balance Sheet Analysis

Balance Sheet Analysis

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Published by: kishorepatil8887 on Mar 31, 2010
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Defensive stocks are those whose prices stay stable when the market declines and are issued
by industries that naturally do well during recessions. Food and utilities companies are defensive
stocks. Debt collection companies also tend to perform well when the market turns sour.

Cyclical stocks are stocks that move up or down in sync with the business cycle. Examples
include the housing industry and industrial equipment companies, because these companies
serve the needs of growing economies. Investors who do not mind buying and selling as the
market fluctuates tend to like cyclical stocks. Individuals who prefer to hold a stock for a long time
may not like them unless they can weather ups and downs in the stock's value.

Gold stocks are the stocks of gold-mining companies. Their value moves up or down with the
price of gold.

Treasury stocks are stocks that have been bought back by the company that issued them.
Companies may buy their stock back from investors when they believe it is underpriced on the
market. The company can then set aside the stock for future uses such as debt payment or the
awarding of stock options.

Small-, Mid- & Large-Cap Stocks


You may have heard the terms "small-cap," "mid-cap" or "large-cap" in your reading about stocks
and the companies that issue them. This short section will discuss segments of the stock market.
It will cover the following topics:

•Market Capitalization

•Small-Cap Stocks
•Mid-Cap Stocks
•Large-Cap Stocks

We will first read about market capitalization and what it means.

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