Equities are stocks and shares in a company. When a trader buy stocks, he is buying equities. Because equities don’t pay a fixed interest rate, they don’t offer guaranteed income.
When buying equity, the investor takes ownership of a small percentage of a chosen company. A percentage of the company will be divided up and shared for this purpose exactly. If the company increases in value, the value of the investor's equity mirrors this and increases as well.
Publicly traded companies list their shares on an exchange for anyone to purchase. The more people invest in their company through stocks and shares, the more capital the company has to fund their business operations. Investors can diversify their investment portfolio through buying from a diverse range of industries on the exchange.
The capital growth (or loss) an investor receives from investing in shares is the difference between the price at which they buy and the price at which they sell.
An investor buys a share in a company in order to sell it for a higher profit later on. They expect the share to increase in value, however, company shares will not always go up in value. This means that this process of buying and selling stocks and shares occurs very quickly.
This is not easy to do, but watching the movement of share prices, and how they respond to company announcements can help a trader build a picture of a company’s relative strength.
Once an investor has bought a share, they are required to register that ownership on a shareholder register/certificate. When an investor decides to sell their share, the funds will take up to three days to settle into the trader account.
Initially trading equities was used by hedge funds and city professionals. Today active trading has been simplified; by allowing smaller investors to utilize their potential.
NetMarkets won’t charge a trader with a commission fee when trading equities. When a trader close the trade, the loss or profit will be immediately reflected in the account balance- with full transparency, as this is the company based policy.
Trading equity CFDs with NetMarkets gives a greater exposure to the market and makes share trading more liquid. NetMarkets offers an extensive selection of global equities across multiple global industries.
Immediate order execution: NetMarkets cut out any and all middle men and use industry-leading technologies to execute your trades in real-time bidding.
Leveraged trading: gain large exposure to diversified markets with a relatively small amount of invested capital.