What is Equity?
Equity represents ownership in a company acquired through contribution of capital, which is required to set up or run a business. This capital is raised through issue of shares to the public or a group of private persons, where each share represents a proportion of the stake on the assets and profits of the company. These shares are either bought directly from the company through an offer, or traded (bought and sold) on the stock exchanges.
Why invest in Equity?
Despite the risk involved, investment in equities is known to offer investors high returns in the long run. Equities investment not only helps an individual in wealth creation over time, but also builds the nation’s capital in the process.
How to invest in equity?
You can either invest in equity for the long-term, or trade daily with the intention to profit from market fluctuations. The prerequisite is a demat account with a Depository and Trading account with a recognized broker such as UAE Exchange (Xtrade broking service)