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Making Money from
Equity Investments
• The term 'equity investment' means buying and holding
shares of public companies trading on the Mumbai Stock
Exchange.
• By buying the shares, the investor becomes a part of the
company.
• It has a number of advantages, including the right to vote to
hire management, share in profits and potential preference
for new shares of the same company.
• Equity is one of the few ways to make a lot of money.
• Equity is for individuals or firms looking to play a 'high risk,
high return' game.
• This is preferable for investors with relatively high risk
appetite.
• This is because of the risk of losing the entire investment.
• Investing in stocks should be a wise and well-researched
decision.
• The share price is directly related to the performance of the
company.
• As a result, it is important to choose promising companies
that will be consistently profitable, allowing you to grow over
time.
• As mentioned earlier, when an investor buys a stock, he or she
becomes the proportional owner of the company based on
the number of shares purchased.
• There are five ways for investors to make a profit from equity
investing:
Dividends:
• As an owner, the investor is entitled to a portion of the
company's profits.
• If the company chooses to distribute its profits as dividends,
the investor receives a fixed amount for each share he owns.
Capital gain:
• When the market value of a stock rises, the investor benefits
as he or she can make a profit from the sale of the holdings.
• Over a period of several years, the investor can make up to 50
times more than his initial investment.
Buyback:
• The Company may announce that it will buy back shares from
its shareholders at a price higher than the market rate.
• Although not every investor wants to sell their shares, the
buyback window allows them to make a profit.
Rights issue:
• When issuing new shares, the company may offer discounts to
existing shareholders.
• Profits can be made by buying shares at a lower price and
selling them at a higher market price.
Bonus issue:
• If a company performs exceptionally well, it can issue free
shares to its shareholders.
• These extra shares quickly start trading at market prices,
giving investors a better chance of making a profit.
• Visit squareoff.co.in to learn the stock market basics

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Making Money from Equity Investments

  • 2. • The term 'equity investment' means buying and holding shares of public companies trading on the Mumbai Stock Exchange. • By buying the shares, the investor becomes a part of the company. • It has a number of advantages, including the right to vote to hire management, share in profits and potential preference for new shares of the same company. • Equity is one of the few ways to make a lot of money. • Equity is for individuals or firms looking to play a 'high risk, high return' game.
  • 3. • This is preferable for investors with relatively high risk appetite. • This is because of the risk of losing the entire investment. • Investing in stocks should be a wise and well-researched decision. • The share price is directly related to the performance of the company. • As a result, it is important to choose promising companies that will be consistently profitable, allowing you to grow over time.
  • 4. • As mentioned earlier, when an investor buys a stock, he or she becomes the proportional owner of the company based on the number of shares purchased. • There are five ways for investors to make a profit from equity investing:
  • 5. Dividends: • As an owner, the investor is entitled to a portion of the company's profits. • If the company chooses to distribute its profits as dividends, the investor receives a fixed amount for each share he owns.
  • 6. Capital gain: • When the market value of a stock rises, the investor benefits as he or she can make a profit from the sale of the holdings. • Over a period of several years, the investor can make up to 50 times more than his initial investment.
  • 7. Buyback: • The Company may announce that it will buy back shares from its shareholders at a price higher than the market rate. • Although not every investor wants to sell their shares, the buyback window allows them to make a profit.
  • 8. Rights issue: • When issuing new shares, the company may offer discounts to existing shareholders. • Profits can be made by buying shares at a lower price and selling them at a higher market price.
  • 9. Bonus issue: • If a company performs exceptionally well, it can issue free shares to its shareholders. • These extra shares quickly start trading at market prices, giving investors a better chance of making a profit. • Visit squareoff.co.in to learn the stock market basics