To put it simply, equity is the ownership of a company through the purchase of shares. It is the total number of shares in a company or the capital amount invested by a company’s owner(s). When a percentage of these shares are offered to the public, an investor can purchase them to own a small part of the company. The investor then profits from the company’s growth, and long-term wealth creation is made possible.
When buying equity in a company, the investor may participate in equity trading for short-term monetary benefit or equity investment for a longer investment plan. Profits can be in the form of capital gains, dividends, or stock price appreciation, and usually, the investor is also given voting rights in the company.
Equity trading and investing are both avenues for wealth creation. While trading is a short-term exchange of equity, investment is for long-term financial goals and depends on the financial performance of the company.
Equity is a high-risk, high-return investment, and at Eureka Stock and Share Broking Services Ltd., we ensure the risk of Equity Trading is minimized through superior equity investment research and in-depth analyses of the micro and macro factors in the market. As members of both BSE and NSE, our team helps you make informed decisions and optimal investments, achieve financial well-being and expand your investment knowledge so that your equity trading pays off in a big way through high returns.