Equities – Research, Planning & Investments.
Finance → Stocks, Bond & Forex
- Author Mike Fullerton
- Published June 9, 2009
- Word count 517
In the financial world the term "Equities" also called a share of stocks indicates a share of ownership within an organization or company. Being a share owner or Equity owner of any particular organization provides you the right to vote on any decision that is undertaken by the company. Although most of the stocks in general share a list of common rules, each new equity issue can have legal clauses attached to it that make it dynamically different from the more general cases.
Equities are defined as claims that enable a person holding a share to hold a ownership or proportionate value of an organization. A person holding such an ownership in the company does not enjoy the highest claim on the company's earnings. Instead, an equity holder's claim is subordinated to creditor's claims, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied. It can also be described as an ownership in any asset after all debts related to that particular asset is paid off. Equities relate differently for different fields. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.
Property markets and the stock markets are always under scrutiny by an average investor. Reason these are the 2 most investment sectors where any individual would expect the highest gain at any given point of time. Brokerage firms specialize in providing their clients (investors) with the best deals as far as the investment module, strategy, class and asset allocation is concerned. These firms offer relationship managers to their customers, who after conducting thorough stock market analysis and equity research come up with the best investment options along with a basic investment plan. A thought on big firms surviving solely on budget garnered through Equity Trading indicates how big the stock/share market is. Equity Trading is basically the buying and selling of companies stocks and shares. Shares in large publicly-traded companies are bought and sold through one of the major stock exchanges, such as the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE), which serve as managed auctions for stock trades. Stock shares in smaller public companies are bought and sold in over-the-counter (OTC) markets.
In order to proceed with Equity trading an individual will need to open up an Equity Account. Most brokerage firms provide you with 3 in 1 accounts that takes care of your demat account online as well as offline. These firms provide you with Customer Care call centers, daily market updates, investment ideas and industry reports & quick trading interfaces that makes Equity trading all the more easier, faster and secure enough thereby helping you achieving your financial goals.
Investment Planner and Relationship Manager for a leading Brokerage Firm in India. To read more about Equities in detail click here here.
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