What is the Equity Investing ?
A company requires funds for its businesses and to meet its working capital requirements. To receive funds, it can resort to both debt and equity instruments. It can provide its shares or stocks through Initial Public Offerings (IPOs) to investors as part of raising funds through equities, or offer loan instruments with fixed interest rates, known as debentures.
Once a listed company offers its stocks to investors, these can be then traded – purchased and sold – in stock exchanges, like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The foremost benefit of trading in shares across stock markets is that you can become part- owners of the company. Every shareholder is a part-owner of the company, in direct relation to the shares owned.
For Right Guidance take assitance of the Equity Expert / Financial Coach as investing in Equity is long Journey
Unlisted Equity investments
Any Company which wishes to raise fund can raise it in the primary market i.e. Through private deals from institutions , venture capitalists and investors . This is the time when one can own them through inlisted deals offered by us . The main advantage of owning shares before the Ipo is that you can buy & sell it personally on your own at your desired prices . Also you can get as many shares you wish to buy if those are available .
Indian Equity Investments
Once companies out with ipo and list on the indian exhanges of NSE / BSE , regular trading starts in it . You can invest and build basket of shares or can do the trading in the equity for short term depending on your Risk profile , Profit expectations and Knowledge you have . It is always good to be prepared with adequate information and Right Support before starting investing or trading in the equity . Indian exchange is one of the most regulated and highest Tournover exchange in the World . You have Equity / Future and options , Currency Futures , Commodity , Engery to trade .
International Equity investments
World is changing and so is the way we invest in Equity . There was a time when only the large HNI , Corporates were able to invest in the Global Companies like Amazon , Apple ,Facebook , Unilever , Tesla , Google .. But now even a investor with few thousands can become owner of the fractional shares of these giants . The best part is everything is regulated as per the Norms by Goverment and compliance is strictly followed . You can open account , withdraw funds , add funds everything online . It is important to have global exposure so that you get benefit of the Dollar appreciation and gloable developments along with india.
What are the benefits of investing in equities?
It has been historically proved that investment in stocks provides the highest returns, over a long-term investment horizon. In fact investment in stocks and securities provide you with returns which can beat inflation. It is among the most viable investment avenues.
Investment in equities can also provide you income through dividend issuance. Issuing of dividends is a corporate action, where listed companies share their profits with existing shareholders. Though it is not mandatory for companies to issue dividends, companies issue dividends to signal profitability, and increase their investor base.
You must, however, remember that equities have a greater exposure to market volatility. Hence, you must conduct thorough market research, besides exercising due diligence, while investing in stock markets.
You can minimise the associated risks by choosing to invest in equity instruments, like Futures and Options (F&O).