What is meant by equity investing?

What is meant by equity investing?
An equity investment is something that is invested in a company by purchasing shares of that company in the stock market. These shares are typically traded on a stock exchange.

What are benefits of investing in equities?
Equity investors purchase shares of a company with the expectation of capital gains, and/or generate dividends. If an equity investment rises in value, the investor would receive the monetary difference if they sold their shares, or if the company’s assets are liquidated and all its obligations are met. Equities can strengthen a portfolio’s asset allocation by adding diversification.

What are the salient points of equity investments?

• The main benefit from an equity investment is the possibility to increase the value of the principal amount invested. This comes in the form of capital gains and dividends.
• An equity fund offers investors a diversified investment option typically for a minimum initial investment amount.
• If an investor wanted to achieve the same level of diversification as an equity fund, it would require much more – and much more manual – capital investment.
• Investors may also be able to increase investment through rights shares, should a company wish to raise additional capital in equity markets.