Stock classification can be based on several aspects. Some stock companies allow their investors to cast votes during their annual meetings. Important decisions related to management and other issues are taken at the annual meetings. However, some companies do not allow their shareholders to cast a vote in any matters. Some stocks may also permit their shareholders to cast multiple votes associated with different matters of the company. To Invest in stocks you have to pay demat account annual charges, 

However, compare the demat account annual charges, brokerage, and other charges levied by various brokers against their demat services to maximize your earning potential through stock market trading. Here are some other types of stocks in India: 

Types on the basis of market capitalization

Stocks can also be categorized into different types based on their market capitalization. The large-cap stocks are usually the stocks of large enterprises like Blue-chip companies. These companies have a huge market capitalization of Rs. 20,000 crores or even more than that. 

Then there are mid-cap companies that have a market capitalization between Rs. 250 crores and Rs. 4000 crores. The stocks of companies that have a market capitalization of up to Rs. 250 crores are considered to be small-cap companies. 

Types on the basis of ownership rights

Stocks can be categorized into five types on the basis of their ownership rights. These types include:

Common Stocks:

Stocks that offer variable dividends to investors are known as common stocks. When the companies have enough liquidity, the common stocks tend to pay higher dividends. 

Preferred stocks:

The stocks that offer a fixed income to the investors in the form of dividends are known as preferred stocks. Preferred stocks are less volatile as compared to common stocks as their price usually remains stable. Unlike common stocks, preferred stocks do not provide voting rights to their shareholders. 

Hybrid Stocks:

Some companies allow their shareholders to convert their preferred shares to common shares with specific conditions. However, to avail this facility, they should hold them up to a particular time period. These are also known as convertible stocks and might or might not provide voting rights to the shareholders. 

Callable Stocks:

Callable stocks can be called back by the companies once they reach a specific price after a particular time. It means that the company buys back the shares from its investors once it reaches a specific price.

Putable stocks:

Putable stocks allow shareholders to sell their holdings once the stock reaches a particular value after a certain time. 

Types on the basis of income

When a company listed in the stock exchange earns enough money, it either reinvests it or distributes it as a dividend to the shareholders. The reinvested money helps the stocks to grow rapidly but they usually don’t offer a high dividend to the investors. Such stocks are known as growth stocks. Growth stocks are preferred by investors who seek higher returns by holding the shares for a long time. To invest in different types of stocks, you need to open a demat account first. It is possible to open a demat account online through the website of a stockbroker. 

The stocks that pay a high dividend to the investors are known as income stocks. Income stocks don’t grow much in value which means that you won’t be able to earn a huge profit by selling them. These stocks are preferred by those who want to earn a stable dividend income through their stock market investments. Income stocks can be either common or preferred stocks. 

Stock types on the basis of their fundamentals 

Intrinsic value is the expected value that a stock can reach in the future. It is also sometimes referred to as the true value of a stock. It is the maximum price at which you can buy a stock without any fear of loss. If the price of a particular stock is higher than its intrinsic value, it is known to be an overvalued stock. If the price of a stock is less than its intrinsic value, it is known to be an undervalued stock.