β#ForexChief #ValueStocks #GrowthStocks #IPO #stocks #StockExchange #profit β
π Value stocks or growth stocks: who has more chances of profitβ
π° If before the first COVID lockdown, US stock speculators preferred fast-growing assets, then last year value stocks began to dominate trading interest. Which securities will be more profitable in 2022?
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Let's remind:Value stocks are companies that have been quoted on the market for a long time and have already achieved stable development. Such a business has weak but steady dynamics of profitability. The cost multiples of these companies are inferior to their more active Β«peersΒ», so these shares are not used for quick speculation. But such companies pay dividends consistently and also carry out a profitable redemption of their shares.
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Growth stocks are considered securities with little experience on the stock exchange, for example, start-up companies that go public (IPO) for the first time. In such companies, profitability is growing, but they do not pay dividends, and the cash flow is directed to business development. Investing in growth stocks is riskier, but it is on them that you can hype and catch a quick profit.
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We will tell you how to analyze stocks and recommendations for choosing assets for short-term transactions in the next post.
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Profits to yβall!