Complete Classifications of Indian Stock Market 2018

Stocks are present in abundance. In the highly volatile and extensive market of equities, thorough knowledge of each stock is necessary! Investing huge sums on a stock with no returns can be disastrous. To avoid this confusion faced by share traders, stock exchange classification exists. It is the process of grouping stocks together under categories like size, exchange compliance, liquidity, etc. The seven types of stocks can be grouped under A, B, T, S, TS, and Z; any stock not belonging to these are kept with others.
 

Stocks can be classified based on the following factors:
 

Indian Stock Market Classifications

1) Liquidity (A): The Bombay Stock Exchange (BSE) sees profitable stocks, as well as mediocre ones. Those that carry high levels of liquidity are classified under A. These shares check all the boxes - size, liquid, name them; and are traded in higher volume when compared to others.
 

2) Trade to Trade (T): Trades in the T group are individual; traders buying these shares have to pay the sum by T+2 days. These stocks are periodically moved depending on their market demands.
 

3) Small-medium Stocks (S): BSE's Indonext segment houses smaller companies. S group shares fall under this segment. As the name suggests, they are smaller-sized and have lower liquidity.
 

4) TS Groups: With stocks in the Indonext segment, TS groups represent a behavior which combines T and S classifications.
 

5) Hazardous (Z): The shares in this group mean bad news. They haven't met trader demands and have failed at redressing complaints. Additionally, the lack of information on these makes it hard to speculate on while forex trading! Z category shares carry the highest risks when compared to others.
 

6) Unnoticed (B): These stocks are the ones left out by other groups. However, they do get settled under the rolling system on normal values.
 

7) Others: Financial assets that don't fall under the above mentioned categories are classified under "others".
 

Along with these, based on market capitalization and other factors, two more groups called LB (Securities Lending and Borrowing), market cap stocks are provided. Market stocks are further divided into large, mid and small caps based on the capitalization of companies.
 

Stock exchange can be plenty confusing to a beginner, but with enough experience, you can work your way up to profits! Equities provide one of the most lucrative grounds for traders. Want to conquer the stock market? Avail the world-class brokerage of WesternFX. Our brokers have years of experience dealing with shares and will equip you with the unparalleled knowledge to dominate your ventures. Call us today to know more.