Equities are the ordinary shares of a company, especially those of a publicly owned quoted company. In the event of a liquidation, the ordinary shareholders are entitled to share out the asssets remaining after all other creditors (including holders of preference shares) have been paid out. Investment in equities on a stock exchange represents the best opportunity for capital growth, although there is a high element of risk as only a small proportion (if any) of the investment is secured. Although equities pay relatively low profit-related dividends, unlike fixed-interest securities, they are popular in times of inflation as they tend to rise in value as the value of money falls. Research Equities
The Probert Encyclopaedia was designed, edited and programed by
Matt and Leela Probert
Abbreviations
Money
Research Equities
