
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
IPO
An IPO (Initial Public Offering) is the process through which a private company becomes publicly...
Defensive Stock
A defensive stock refers to shares of companies that provide stable and consistent returns and...
Cash Contract
A cash contract is an agreement between two parties where goods are delivered at a...
Long-Term Capital Gain Tax
Long-term capital gain tax is the tax levied on profits from the sale of shares...
Average Daily Trading Volume
Average Daily Trading Volume (ADTV) refers to the number of shares of a particular stock...
Liquidity Risk
Liquidity risk is the chance a company can’t meet its debt obligations due to insufficient...