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equity investments
Equity investments can be seen as the type of investing line which is done by a person or firm, the investment is usually base on stock or bond where by what you end at the end of the deal are in the form of capital, that is capital gains. In order word it can also be seen as the cash that is invested in a company by the person that own it, and the cash he use in investing is not returned in a normal way or cause of the business. When you are involved in this type of businesses, the only way you can get your money back is only when you sell your shareholding to other investors, that is selling the part you own, and that is only way you can make profit in this type of business. I know many companies need capital to meet their fund or cash requirements, such kind of companies need equity investors. I know this is not the kind of businesses that brings instant income to an individual, but it is also a very good thing because at the end of the negotiation you can sell your share for a huge amount. One of advantage attach to it is that there is no interest charged, and the skills of the person that invest is also required, i guess that all i understand about this topic, thank you.
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Money that is invested in a firm by its owner(s) or holder(s) of common stock (ordinary shares) but which is not returned in the normal course of the business. Investors recover it only when they sell their shareholdings to other investors, or when the assets of the firm are liquidated and proceeds distributed among them after satisfying the firm's obligations.
Types of Equity investing: may include Share capital (common stock) Preferred stock. Capital surplus. Retained earnings. Treasury stock. Stock options. Reserve.
What 'equity' atucally means!: It is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.
How do investors make money off it? Dividends are a form of cash compensation for equity investors. They represent the portion of the company's earnings that are passed on to the shareholders, usually on either a monthly or quarterly basis. Dividend income is similar to interest income in that it is usually paid at a stated rate for a set length of time.
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