What is Equity Investment?
Investing in the stock market is a way of life in the United States, and most of these investments are equity investments. Even if a depositor in a bank or credit union has only a few hundred dollars in deposits, he or she is, indirectly an equity investor through the bank’s stock portfolio. Equity investment is a long-term stock investment strategy whereby profits are realized through dividend payments and capital gains accrued on the equity of a particular stock. The great majority of equity investors do not actually hold the securities, or certificates. Instead they have an account with a bank or a fund manager who has physical access to these stock certificates. Thus, equity capital is money gained by a company in exchange for a share of ownership in the company. Equity investment is sort of a loan to the company that is paid back – or not – by way of dividends paid out of company profits or through the sale of ownership rights. The value of a property, less any debts owed on the p
Everyone expects to see great returns on their investment but sometimes it may seem like no money is coming in at all even though you may have invested in a number of certificates of deposits, bonds, etc. If that is the case then perhaps an equity investment may be something you may want to do some research on. For equity investments you would be buying stock on the stock market and get paid dividends whenever they are issued – many companies pay out dividends quarterly. By putting your financial resources into an equity investment, it is only natural to hope for income from dividends and capital gain as the stock value rises. However, in direct correlation with its ups, when you have an equity investment in a company and their stock values go down your net worth decreases as well. The value of your equity investment is determined by basic supply and demand. The supply is the number of stock shares available, and the demand is what the investor is willing to pay for that stock. If the
Equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain as the value of the stock rises. It also sometimes refers to the acquisition of equity (ownership) participation in a private (unlisted) company or a startup (a company being created or newly created). When the investment is in infant companies, it is referred to as venture capital investing and is generally understood to be higher risk than investment in listed going-concern situations. Direct Holding and Pooled Funds The equities held by private individuals are often held via mutual funds or other forms of pooled investment vehicle, many of which have quoted prices that are listed in financial newspapers or magazines; the mutual funds are typically managed by prominent fund management firms (e.g. Fidelity or Vanguard). Such holdings allow individual investors to obtain the diversification of the fund(s) an
Equity Investment : Investing in stocks. Gold and Silver go up in price due to 1. Basic demand and supply, that is, go up when demand rises and go down if supply rises. 2. Flight to safety increases their demand [and thus price] because people run to what they think is currently safe, for example, at the present time, they think that equities are unsafe even if they are on fire sale. Thus gold and silver usually rise in price when stocks go down. An extremely good reference for equity investment is: http://www.onlinesalesplus.