Ex-dividend is a strange word to many investors, but dividend is well known. Dividends will be ex-dividend, after which the share price will fall. What's going on here? Today, Bian Xiao will share with you the meaning of cyclical stocks and growth stocks for your reference only!

What do cyclical stocks and growth stocks mean respectively?

Growth stocks, as the name implies, refer to the stocks of a company in the growth stage, generally speaking, some new enterprises or start-ups as a whole, which are in the development stage, such as new energy industry and new materials industry. These industries have great room for development and progress and are highly sought after by investors. In the development period, the stock price is relatively low, and the yield is relatively low. Because the growth companies will spend most of their profits and income interest rates on product research and development and expand production scale, they will allocate relatively little funds. But if the company develops rapidly, the profit will reach a peak, and the follow-up will be higher than the previous one. Therefore, if you invest in growth stocks in the early stage, the income in the later stage will be very considerable. Usually, you buy at a low price and sell at a high price. Therefore, growth stocks are more suitable for investors to hold for a long time, giving the company enough time to develop, and will give you unexpected benefits later.

As the name implies, cyclical stocks refer to stocks that fluctuate with the ups and downs of the economic cycle, and are particularly sensitive to the cyclical data of the economy. When the economic growth accelerates and there is a great demand for such products, the stock price will rise rapidly, but it will fall anyway, which is an obvious feature of cyclical stocks. Periodic stocks generally cover steel, chemicals, non-ferrous metals and so on. Circular shares are generally traditional industries, and most of the companies belong to medium and large enterprise companies with a long history. The development scale and performance of such enterprises are relatively stable, and the stock dividends are relatively high. But because of its periodicity, it is often called the object of speculation, and cyclical stocks are more suitable for short-term speculators.

To sum up, the biggest difference between cyclical stocks and growth stocks should be the different investment methods. Growth stocks are suitable for medium and long-term investment, and cyclical stocks are suitable for short-term investment.

What is the difference between cyclical stocks and procyclical stocks?

Periodic stocks and procyclical stocks are the same concept, which can also be said to be the same thing. Stocks that run with the economic cycle are called cyclical stocks. When the economy is better, cyclical stocks will rise, but stocks will fall anyway. Cyclical industries are sensitive to economic data, so sometimes cyclical stocks are also called the barometer of the economy. Cyclical industries generally include steel, cement, nonferrous metals and automobiles, while countercyclical industries include agriculture, medical care, film and television, entertainment and biotechnology.

Changing cyclical stocks into pro-cyclical stocks is just a new concept in the stock market, which enables those pro-cyclical stocks to rise suddenly in the stock market and become a group of leading dark horses in the stock market. New concepts and new things are always needed in the market to make stocks in a certain industry or field become cash dark horses.

The emergence of the concept of pro-cyclical stocks has caused a new round of rise, and its significance lies in releasing the money-making effect of the stock market to lure a new round of investors into the stock market, thus making more and more funds in the stock market. To put it simply, procyclical stocks are things that have been hyped up, so that those who speculate on them can get greater benefits. The stock market will never lack new concepts, and the emergence of each new concept means a hope of making money.

Always in the stock market, the capital market is always looking at cash, and cash is the last word. It's all about "what's the difference between cyclical stocks and procyclical stocks?" Are they the same? " I hope it helps you.

Why do stocks fall on ex-dividend days?

Because after the ex-dividend date, the total share capital of the stock will increase, which will dilute the earnings per share of the stock, so the stock price will decrease in proportion to the increase of tradable shares. Ex-dividend means to remove dividends from the stock price after dividends, so the price will definitely fall, otherwise the dividend money will be available, and the stock price will not fall, which will cause turmoil.

Simply put, stock ex-dividend is ex-dividend, that is to say, the stock price is lowered because listed companies pay stock dividends to shareholders or are now increasing and ex-dividend. The stock price reduction caused by cash dividends paid by listed companies to shareholders belongs to ex-dividend.

After ex-dividend, the stock price will fall, but the total assets of the stock will not change, and the stock assets of investors will not change. When the total share capital of listed companies changes, the shares will be basically ex-dividend to adjust the corresponding value of each share of listed companies, which is convenient for investors to compare and analyze the stock prices. Among them, listed companies will issue shares, increase capital and expand shares, issue additional shares, share allotment and repurchase cancellation. These situations will be announced in advance.

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