ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following should be considered when investing in the stock market?
A
52 week high/52 week low
B
P/E ratio
C
Dividend
D
All of these
Explanation: 

Detailed explanation-1: -Look for the company’s price-to-earnings ratio-the current share price relative to its per-share earnings. A company’s beta can tell you much risk is involved with a stock compared to the rest of the market. If you want to park your money, invest in stocks with a high dividend.

Detailed explanation-2: -Diversification is one of the most fundamental rules of investing and allows you to take a middle road through the extremes of market performance, allowing your investment to grow regularly with smaller fluctuations along the way. Diversification is the most effective means of managing risk.

Detailed explanation-3: -Draw a personal financial roadmap. Evaluate your comfort zone in taking on risk. Consider an appropriate mix of investments. Be careful if investing heavily in shares of employer’s stock or any individual stock. Create and maintain an emergency fund. More items

Detailed explanation-4: -Assess the market. Before you add a position, note how the broader market is moving, since research suggests that roughly 75% of stocks move in step with the market. Identify a sector. Screen for stocks. Review the fundamentals. Check the charts.

There is 1 question to complete.