Equity

Equity
Equity Securities represent the ownership of a corporation. For example, if an investor purchased 50 shares out of 1000 outstanding XYZ shares, this investor owns 50/1000 of the XYZ Corporation. A publicly held corporation, whose shares are traded over a recognized Exchange, can have literally thousands of shareholders or owners. Investors can sell or buy shares anytime, as they wish. In the U.S., the New York Stock Exchange and the American Stock Exchange are two of the exchanges which match sellers of equity shares with buyers.
Corporations issue equities in order to raise money for business growth. The amount of authorized stock must be approved by the Securities And Exchange Commission (SEC) and the State Secretary of the state under which the corporation is chartered. This protects the investor from fraudulent securities issues or undue dilution of value of existing shares due to new issues. The Securities and Exchange Commission requires that the corporation file a Prospectus of each new securities issue. This prospectus sets forth the terms of the issue and contains pertinent data about the corporation, and is available to all potential investors.
Equity Links
Use following links to learn more about Equity Securities.
Why Equity Investment ?
Types of Equity Securities
Equity Buy/Sell Trade - Examples
For More Information. . .
Accounting Treatment
Pricing Data