Equity claims to be an asset of ownership to an individual, usually it is also called stock and share in common parlance or in general public. Usually in stock market it is referred to as equity security. It is actually a financial instrument which can trade in the public market and is considered as an important asset which can be kept reliable. In pragmatic terms it is an ownership stake which is actually registered list its shares in the stock exchange market. It is mostly traded by individuals as they are called as retail investors and they usually trade in the market for personal gain. Not only is this even the institutional organization to pool their amount in the equities to make huge professional profits.
What are basic equity types?
Basically there are three types of equities. Commencing with stock or in common language called as shares is traded the most. Usually stock owners seek to gain profits from corporation’s revenue. These shareholders have ownership rights and also have powers to elect direct directors at annual general meeting in the organization. Owners of the stock also receive fixed dividend over shares for a period of time. Owners also have the privilege to convert their preferred stock in to common stock. Third type is warrant which the individual can by at a future date at prescribed price. Companies actually allot shares to already existing holders of shares in the organization.
Markets for Equity
Equities are actually initiated in primary market during company’s initial public offering. General public can buy them through the mediators involved. A second market for the equities gets created when the investors trade these equities amid themselves to generate profits. In second market trading is usually taken care by the stock brokers or the intermediaries and the actual company initiating the trade is not involved.
Stock Exchange.
These are actually the platform for trading for the general public. Through registered intermediaries, owners of stock usually trade their shares in these markets. The buyer buys the equity at top price and bottom price will be at which it is being further sold. Basically owners of the equities draw huge advantage as the organization have to make full disclosure of their financial statements in the stock exchange. The disadvantage is also there that any fluctuations create an instant panic amid the investors.
Equity Trading leads to better returns over the investment, with institutions also becoming part of the trade instead of only individuals, having Online Trading Account.
Kumar Share Brokers Ltd. is a professionally managed corporate broking house. We offer all financial services like Trading In Stock Market,Equity Trading,Currency Trading, Commodity Trading, Nifty Trading,online Share trading, online trading accounts, Demat Account and free demat account as well.Basically there are three types of equities. Commencing with stock or in common language called as shares is traded the most. Usually stock owners seek to gain profits from corporation’s revenue. These shareholders have ownership rights and also have powers to elect direct directors at annual general meeting in the organization. Owners of the stock also receive fixed dividend over shares for a period of time. Owners also have the privilege to convert their preferred stock in to common stock. Third type is warrant which the individual can by at a future date at prescribed price. Companies actually allot shares to already existing holders of shares in the organization.
Markets for Equity
Equities are actually initiated in primary market during company’s initial public offering. General public can buy them through the mediators involved. A second market for the equities gets created when the investors trade these equities amid themselves to generate profits. In second market trading is usually taken care by the stock brokers or the intermediaries and the actual company initiating the trade is not involved.
Stock Exchange.
These are actually the platform for trading for the general public. Through registered intermediaries, owners of stock usually trade their shares in these markets. The buyer buys the equity at top price and bottom price will be at which it is being further sold. Basically owners of the equities draw huge advantage as the organization have to make full disclosure of their financial statements in the stock exchange. The disadvantage is also there that any fluctuations create an instant panic amid the investors.
Equity Trading leads to better returns over the investment, with institutions also becoming part of the trade instead of only individuals, having Online Trading Account.
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