Equity Investment

What is Equity?

Equity is any valuable asset like shares of a company, real estate etc.

What is Equity Investment?

Investment in a company by buying its shares is called equity investment.

How to Invest in Equities?

The first step towards equity investment is RESEARCH. Before investing in stock of any company it is very important to do some research on the company. Do some research about management of the company, announcements of the company, dividend payoffs, corporate moves etc. Check out the growth rate of the stock's earnings and some historical data to understand what the company has done in the past. Get the current status of the stock movement using real-time quote, average trades per day, total number of shares outstanding, dividend, high and low for the day and for the last 52 weeks.

All this information will give you idea about the nature and performance of the company. Also try to access data about mutual funds and financial institutions who are investing money in the company.

Equity Investment

Understand Following Equity Trading Terms:

  • High (high) : The highest price for the stock in the trading day.
  • Low (low) : The lowest price for the stock in the trading day.
  • Close (close) : The price of the stock at the time the stock market closes for the day.
  • Chg (Change) : The difference between two successive days' closing price of the stock.
  • Yld (Yield) : Dividend divided by price
  • Bid Price : Buyer’s price
  • Ask Price : Seller's offer price
With proper research and information, an investor can pick the right equity to buy and invest in.