What is equity?

Equity is the value of shares issued by the company to raise money by sharing a part of ownership. Investing in equity is oldest form of investment. Companies issue shares through public announcement in newspaper or other media. Investor can be individual or institutions or companies. Here the investor becomes a part of company’s ownership by paying the share value. The unit of ownership is measured by the number of shares owned by the investor. As a return the profit is shared as dividend.

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How does investing in equity benefit a investor?

Equity is also an asset like savings bank account, cash deposit, land and building etc…It is obvious that when a company sell its shares it Is ready to divide its ownership among the public. The benefits of an investor depend on the amount he is invested and number of shares he owns. So the amount invested decides the right of an investor and his part in the company earnings. The value of the equity can be determined by the performance of the company. The market keeps an record of the company and its performance which attracts the investors in buying and selling of their holdings. The exchange of shares is also an indirect form of income. Hence Investments through single account has become mandatory.

How to purchase equity shares?

Equity shares can be bought when a company announces on issue of shares and also from an existing investor who is ready to sell his holdings for various reason through a trading account.


Who can guide me to invest in share market?

An expert guidance is required for a beginner and existing investor to know the pros and cons of the market. That expert can be a stock broker like enrich broking. A stock broker deals with shares, Mutual funds, Bonds and other financial instruments. They provide information and tips to invest in best way. A stock broker would be your coupon to hit the winning prize.