Knowledge Center Fundamental Analysis
Equity is the value of shares issued by the company to raise money. Companies issue shares through public announcements in newspapers or other media. An investor becomes a part of the 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 a dividend.
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Equity is also an asset like a savings bank account, cash deposit, land, building, etc. When a company sells its shares, it Is ready to divide its ownership among the public. The benefits of an investor depend on the amount he is invested in and the number of shares he owns. So the amount invested decides the right of an investor and his part in the company's earnings. The company's performance can determine the value of the equity. The market keeps a record of the company and its performance, which attracts investors to buy and sell their holdings. The exchange of shares is also an indirect form of income. Hence Investments through a single account have become mandatory.
Equity shares can be bought when a company announces the issue of shares and an existing investor who is ready to sell his holdings for various reasons through a trading account.
Expert guidance is required for a beginner and existing investor to know the pros and cons of the market. A stockbroker deals with shares, Mutual funds, Bonds, and more. A stockbroker would be your coupon to hit the winning prize.