What are "growth stocks"?
Growth stocks have had—and may continue to have—good track records for growing revenues, profits, and market share, even as larger economic forces may depress the performance of other similar companies. For example, many experts believe these types of stocks may include great companies in industries such as health care and food as people need to eat and receive medical care despite any current economic conditions.
What are "cyclical stocks"?
Cyclical stocks typically signal the recovery of a period of economic decline, as they tend to begin to grow early as a recovery is under way. Experts like to include companies
How much change must occur in a stock market in order to call it a correction?
stock market correction occurs upon a 10% decline from a high observed on a major exchange or composite stock average.
within certain industries such as automotive, steel, heavy machinery, and mining, as indicative of an impending recovery as they may recover sooner from a decline, and play a pivotal role in the general economy.
How much of an increase in the average price of stocks must occur in order to declare a bull market?
In order to better understand broad movements in the market—and whether today's conditions represent buying or selling opportunities—investors characterize increases in the price of stocks in an average by more than 20% from a low as a bull market. It characteristically is a period in which stock prices are rising, profits are increasing, inflation is low, interest rates are relatively low, and money is flowing into the stock market.
How do companies use an initial public offering to help support their continued growth?
An IPO is a way in which a private company raises capital in order to fuel further expansion and investment. Typically, a private company may need more capital than what its current business generates in order to expand its market imprint, product offering, innovation, manufacturing, information systems, or a combination of all of these. Company founders may desire a liquidity event in order to cash out of the company. By making an offer for the sale of equity (shares), the company can quickly raise capital needed and continue to generate or improve its profitability over time.
