Equities - Stocks & Shares

Equities can also be known as stocks and shares, there are lots of jargon around these terms but let’s try and make this as simple as we can!  As part of our service to you IFA Essex can advise you on the different types of investing available in the marketplace.

When you invest in shares you are investing directly through the stockmarket, when you purchase shares in a company you are effectively buying part of that company and are known as a stakeholder in that firm.  Becoming a stakeholder gives you the right to be able to vote on certain issues within that company.  Dividends become payable when the value of the company increases in line with its growth and profitability.  The value of your shares will also increase over time, depending of course on market conditions.

It is important to bear in mind that the level of any stockmarket can go up or down, therefore this can be seen as a riskier way of investing.  Shares can be a one of the more volatile products, you can also lose shares if that company becomes insolvent, however if you have a diverse portfolio of shares then you will reduce the likelihood of losing all of your shares.