What are the characteristics of equity investment?

Mar 21st, 2011

1 in Personal Finance Report

1 Answer

Equities are assets of a company spread among shareholders of stock. An equity investment means buying of shares of a corporation. The investor buys shares in order to receive income from dividends and capital gains, as the value of the stock rises.

The money invested in equities is not returned by the company in the normal course of the business. Investors can get it (or in unfortunate cases a part of it) back only when they sell their shares, or when the assets of the company are liquidated.

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