What are Equities?

When buying an equity, the investor takes ownership of a small percentage of a company. A percentage of said company will be divided up and shared for this purpose. If said company increases in value, the value of the investor's equity mirrors this.

Publicly traded companies list their shares on an exchange for anyone to purchase. The more people invest in their company through stocks and shares, the more capital the company has to fund their business operations. Investors can diversify their investment portfolio through buying from a diverse range of industries on the exchange.

An investor buys a share in a company in order to sell it for a profit later. They expect the share to increase in value, however, company shares will not always go up in value. This means that this process of buying and selling stocks and shares occurs very quickly.

Once an investor has bought a share, they are required to register that ownership on a shareholder register/certificate. When an investor decides to sell their share, the funds will take up to three days to settle into your account.