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Encyclopedia > Equity investment

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Equity investment

Equity investment is the buying and holding of shares of stock on a stock market by individuals and funds in anticipation of income from dividends and capital gain[?] as the value of the stock rises.

An investor may buy shares, that is ownership equity, of a company or bonds, that is debt of a company. Diversification both between debt and equity and between different companies is often recommended as is the practice of "buying low and selling high," should one be so wise and quick. [1] (http://www.yesyoucantimethemarket.com/)

To try to predict good stocks to invest in, two main schools of thought exist: technical analysis and fundamentals analysis.

Further Reading

  • Yes, You Can Time the Market!, by Ben Stein (Author), Phil DeMuth (Author), John Wiley & Sons, 2003, hardcover, 240 pages, ISBN 0471430161



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