Types Of Shares Based On Trade Performance And Examples

Illustration of shares (Unsplash)

YOGYAKARTA If you plan to invest by buying a company's shares, try to vote based on its trading performance. The type of stock based on trading performance is a stock that is measured based on the company's high or low ability to increase profits related to the low value of shares in the capital market.

Trade performance usually determines how much profit stock investors will get. Therefore it is natural that investors who want big profits prefer stocks based on the company's trading performance in the capital market.

There are five types of shares based on trade performance. Each has criteria that can be considered by potential investors. The five types are as follows.

Blue chip shares are large proven shares of large companies. Usually the company already has a stable performance, even the profits that can be given cannot be doubted. This type of stock is in great demand by investors because it promises large and stable profits.

Blue chip shares are usually from state-owned companies or private companies whose age is quite long in running their business. An example of blue chip shares is PT Bank Rakyat Indonesia Tbk. With the issuer code BBRI, or shares of PT Unilever Indonesia Tbk. with the code UNVR.

Simply put, the income shares are shares of companies that have strong cash power and are able to provide routine dividends with quite high numbers compared to other dividends. As the name suggests, this type of stock is able to provide dividend profits to investors on a regular basis.

An example of income shares is the company PT Indofood Sukses Makmur Tbk with the issuer code INDF, PT Bank Central Asia Tbk with the issuer code BBCA. In addition, there is a company in the mining sector, namely PT Adaro Energy Tbk with the issuer code ADRO.

Growth stocks are stocks from companies that are able to generate huge revenues, but they prefer to invest profits made into other businesses. This condition makes companies rarely distribute dividends to their investors. The company will continue to expand its business to strengthen their business for future gains.

For example, paper factory company Tjiwi Kimia Tbk with the issuer code TKIM is still trying to develop its business. Investors can choose shares of this type by looking at the IDX Growth 30 index published by the Indonesia Stock Exchange.

As the name suggests, this stock comes from a company that has the potential to get big profits but is still volatile. This happens because of various factors, for example, start-up companies that often make changes to management or companies with new products and services so that they still need time to find a market.

An example of speculative shares is PT GoTo Gojek Tokopedia Tbk with the code GOTO issuer. The company itself is still making business development efforts.

countercyclical stocks refer to the shares of companies working in certain industries or sectors with reversed financial performance with the overall economic condition. This type of stock price can move counter to economic trends. When the economy is sluggish or experiencing a recession, this type of stock actually rises.

Examples of countercyclical stocks include companies in the health sector. During the COVID-19 pandemic, the global economy will be sluggish. However, the health company managed to record a fairly high profit.

That's information related to the type of stock based on trading performance. Visit VOI.ID to get other interesting information.