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What in equity investment?

An equity investment generally refers to the buying and holding of shares of stock on a stock market by individuals. And firms in anticipation of income from dividends and capital gains. 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. This may also happen when the assets of the firm are liquidated. And proceeds distributed among them after satisfying the firm’s obligations. Also called equity contribution

Advantages of Equity Investment India

  1. Rights Shares
    Whenever companies require further capital for expansion etc., they tend to issue ‘rights shares’. By issuing such shares, ownership and control of existing shareholders are preserved and the investor receives investment priority over other general investors.
  2. Dividend
    An investor is entitled to receive a dividend from the company. It is one of the two main sources of return on his investment.
  3. Capital Gain
    The other source of return on investment apart from dividend is the capital gains. Gains which arise due to rising in market price of the share