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


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