Long-Term Stocks
Long-term stocks refer to shares that investors intend to hold for an extended period, typically more than a year, to benefit from capital appreciation and dividends. The goal is to achieve significant returns through the growth of the company over time. Investors select long-term stocks based on fundamental analysis, focusing on factors like the company’s financial health, consistent earnings, growth potential, competitive advantage, and industry trends. These stocks are often less volatile than short-term investments and are ideal for those looking to build wealth steadily while minimizing market timing risks.
Related Terms
Delivery Date
The delivery date of a cash or derivative contract is the final date and time...
Bottom Line in Finance
In finance, the 'bottom line' refers to a company’s key metrics, such as earnings, profits,...
Interest Rate Risk
Interest rate risk is the potential drop in a fixed income security’s value due to...
Authorized Capital
Authorized capital, or authorized share capital, represents the maximum value of shares a company can...
Internal Rate Of Return
The Internal Rate of Return (IRR) measures the compound annual return of a financial asset,...
Indices
Indices are baskets of financial instruments that gauge their collective performance. For instance, stock market...
