Investor Glossary-equitiesInvestor Glossary-equitiesInvestor Glossary-equitiesInvestor Glossary-equitiesInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Equities

The HTML to link to this page
 

Equities is another name for shares or stocks. To have equity in an asset is to own a piece of it; equities is used more broadly to mean ownership interests in companies. Equities are distinguished from bonds, which represent loans to the issuer. Holders of equities may or may not receive dividends of varying size, depending on the company's earnings and dividend policy. Bondholders receive regular interest payments. Both the prices of equities and bonds may go up or down. But in general the prices of equities are more volatile, and holders of equities are more likely to look to capital appreciation (an increase in stock price) to provide a suitable return on their investment. Because of the greater likelihood of capital appreciation but the more uncertain outlook for a consistent stream of cash payments, equities are usually the more aggressive investment. However, equities are as diverse as the companies they represent. Some equities offer consistent dividend payments but only slow, if steady capital appreciation. Other equities offer no dividends, but the real, if uncertain, prospect of large price increases.



Rate this equities definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: limit order, EBITDA, reverse mortgage, per diem, balance sheet, APR, option premium, cancelled check, required rate of return, debt service coverage, covered put, wholly-owned subsidiary, Key Rate Duration, dividends payable, liquidity ratio, deferred revenue, labor relations, quality assurance, diluted share, margin rate, 144a, inflation, ex-dividend, in escrow, risk management, retained earnings, deferred tax, FICO score, 401a, stock split, 1035 exchange, phantom income, command economy, FTSE, minority interest, irrevocable trust, VIX, stock market close, average price per share, Zero Cost Collar, open position, 1031 exchange, current ratio, ex-dividend date, implied volatility, annual return, real GDP, LIBOR, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use