What are Equities?
Equities are pieces of a company, also known as “stocks”. Equities or stocks represent an ownership of the company. On a company’s balance sheet, you can see the amount of funds contributed by stockholders plus retained earnings or losses, also known as “stockholders’ equity.” When you hold stock, you become a shareholder.
Equities investors purchase stocks of a company with the expectation that they’ll rise in value in the form of capital gains, and/or generate capital dividends. If an equity investment rises in value, the investor would receive the monetary difference if they sold their stocks. Equities can strengthen a portfolio’s asset allocation by adding diversification.
Equity trading is the buying and selling of company stocks, also known as equities, on the financial market. There are a few ways in which you can invest in equities, and equity trading refers to the buying and selling of public company shares through a regulated stock exchange or as over-the-counter products.
Why should you invest in equities?
Wherever you are in life, equities have an important role to play within a properly diversified portfolio. They can help with building your savings, maximizing your income, and protecting your wealth:
- Building your savings
Equities provide superior long-term returns compared to cash and fixed-income investments. However, equities typically fluctuate more in value. Just because a particular equity is down one year doesn’t mean it will be down in future. The key is to determine when it’s a temporary setback and when it’s a more serious problem.
- Maximizing your income
It’s important not to overlook the key role that equities can play in your portfolio, as they can increase your income very fast with right choice of purchase.
- Protecting your wealth
Another reason to invest in equities is to protect your wealth. As it is said before, adding a certain percentage of equities to your portfolio, while keeping the balance in guaranteed investments, can help protect your portfolio’s value in the long run.
What are the risks of equities?
It is possible to control certain risks, and before starting to trade equities it is always good to do some research about the company you want to trade. If the company you invest in does not perform well it can go even bankrupt and your stock can be worthless.
To learn how we protect your account and money, read our Regulations & Protection.
Why trade Equities with Finveo?
There are many reasons why you should choose Finveo as your broker of choice to start trading equities. Here are just a few:
- 1000 US Stocks.
- 30 years of experience in global markets.
- No hidden fees.
- 24/7 multilingual customer support.
- Fast and safe execution, with use of global PSPs and banks.
You can view the product list for more than a 1000 US stocks here.
Commission Schema For Equities
If total commissions paid during the month are less than the required minimum, the difference is paid as a maintenance fee.
Example: USD 100 minimum - USD 70 paid commission = USD 30 maintenance fee.
This is calculated at the end of each calendar month. Maintenance fees will reflect to a client's account on the third business day of the next month.
* All the Exchange and data fees will reflect to client account.
Example: Advanced Account
The client buys 100 Tesla shares:
Commission is (100*0.02=2 USD). It is below trade minimum and the client pays 5 USD per trade, plus exchange fees.
The client buys 400 Tesla shares
Commission is (400*0.02=8 USD). It is above trade minimum and the client pays 8 USD per trade, plus exchange fees.