Investment
What is equity? You hear this word everyday, when you watch business news channels, when you travel in local train or in any other situation, but what is it exactly?
Equity is defined as stock or any other security representing an ownership interest in a company listed on the stock exchange.
An equity share is a right to a share in the profits of a Company. If you want a share in the company's profits, you can do so by buying an equity share.
Basic information on equity investing
Equity investment refers to buying a piece of a company. You do this by buying shares in that company. There are two ways to acquire shares in a company: from the primary market, where you buy a company's share when it first issues shares (or equity). This first share offering is called an initial public offering (IPO). Or, you could buy equity in the secondary market, which is the stock exchange.
When you buy or sell equity on a stock exchange, you have to do the transaction through an exchange-certified broker/brokerage firm, who will now act as your agent whenever you want to buy or sell equity.
Equity investments are high-risk high-return propositions. There is scope for serious erosion of capital as well as considerable appreciation. This depends on many factors such as performance of the company, general market conditions, state of the economy and so on...
Fixed Deposit: Basics
What is a fixed deposit?
A fixed deposit is an account that allows you to deposit your money for a fixed period of time, earning you interest at a fixed rate. It gives you a higher rate of interest than a savings bank account.
How do I apply for an FD account?
You can get a bank FD at any bank. You have to open an FD account with the bank to make the deposit. Some banks may also insist that you maintain a savings account with them to operate an FD account.
You can get a bank FD at any bank. You have to open an FD account with the bank to make the deposit. Some banks may also insist that you maintain a savings account with them to operate an FD account. When you open the FD account, you are issued a deposit receipt or an account statement. This statement can be updated, depending on the duration of the FD and the frequency of interest calculation. Make sure you check deposit receipts carefully to see that all particulars have been properly and accurately filled in.