Stock Rating: The brokerage and research firm gives stock suggestions from time to time. Under this, she tells which stock to buy and in which stock to square off her position. To square off the position means to sell your position. The brokerage firm gives ratings to the stock by combining various indicators on the chart pattern and the news affecting it. Each type of rating has its own specific meaning, which is very important to know before investing in the stock market so that you can make your portfolio strong.
What are the meanings of stock rating
- Buy: If a stock has been given this rating, then it means that the stock can give more than 15 percent return on investment in the next 12 months i.e. investors are advised to buy this stock.
- Add: Under this rating, investors are advised to increase the shares of any of their companies present in their portfolio. The brokerage firm gives this rating to those stocks which can give 5-15 per cent returns in the next 12 months.
- Reduce: The brokerage firm gives this rating to such stocks, whose prices may increase by only 5 percent or fall by up to 5 percent in the next 12 months.
- Sell: Stocks whose prices are expected to fall by 5 per cent or more in the next 12 months are given a ‘Sell’ rating by the brokerage firm.
- Not Rated (NR): This rating is given to those stocks for which the brokerage firm does not provide any rating or price target and the report is prepared for informational purposes only.
- RS (Rating Suspended): This means that the rating and price target for the stock has been suspended and the rating and price target given earlier is no longer effective. This rating is given if it is not possible to assign a rating or price target due to lack of adequate fundamentals or due to any legal, regulatory, policy reasons.
(Input: Kotak Securities)
(Note: The article here is for informational purposes only.)
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