Jul 7, 2011

Benefits of Having an Equity Investment

equity investingMany of you have heard about Equity Investments or even have some Equity Investments yourself. In this article we will cover some of the benefits of having one or many Equity Investments.


First off you will have to know what an Equity Investment is. Equity Investment can be anything from common stocks, preferred stock, and it can even be an investment in real estate, or any other forms of valuable assets. Many people have investments so see if you have one or more lying in your security deposit box, or just laying around.


Also, having an Equity Investment means that you can pick and choose who you want to invest your money with. That way you can sit down, and do some researches on the company you are looking at or for. For example some of the research that you will be able to do is research how long the company has been around, how long the company has been around, how much of a profit the company has made, has their stocks gone up or down lately, and if it’s possible to see how many people are already invested into that company already.


Another benefit you should do before you begin to invest is doing a mock-up. Take the stocks, mark the price that the stocks are for that day every day that you can. For the next three weeks make sure to check the prices as often as they are available, and make sure to keep them written down in a place that you can check back in every day for three weeks.


At the end of the three week period you will be able to see whether or not your investment has went up or down. If you have seen what will happen then you can invest if you had made a profit, and if you have not made a profit then move on to another one that has made a profit. Try several company stocks at once to make sure that you get in a good variety of companies so that you don’t have to wait another full three week period.


shareholder AGMApart from just being an business ‘outsider’, having one or even many Equity Investments would be the fact that you have some decision in that company. You will be given the opportunity to vote for certain things like who will be on the company board, and even other things may or may not have to be voted on. In the end if you invest in a company they give you that chance of having your opinions being seen, and actually having them matter.


There are numerous reasons why you should look into investing into an Equity Investment. Equity Investments can be multiple sources of profit. You may even invest in them during your retirement to help supplement your retirement years. Who knows that vacation home in Florida might become a reality.


Another benefit of having large amounts of stock within’ one company is the fact that you are actually becoming strategic partner in the business enterprise that you’ve invested into. In the case of a startup company, your position will be that of Angel Investor to the new enterprise. Nevertheless, for most people, it’s quite a tough path to reach this level as it’ll likely to involve a huge amount of capital investment.


All in all one can hardly ever go wrong investing in Equity Investments. The only way that would happen is if you were to not have done your research, and have not done a mock-up test. That way you won’t fall down into the negatives when you are investing. Overall though investing has numerous benefits.

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