Stocks

Investments

Stocks (also commonly known as shares or equities) are investments in a company. Each stock represents a part (or share) of a company, so, by buying a stock you take partial ownership in a company and can therefore share in its profits (or losses).

Theoretically speaking, the value of a stock is determined by the present value of all future expected profits of the company and the share price will thus fluctuate as a function of how the company is expected to perform.

Equities may refer to regular stocks but may also be used as a term to refer to the other large sub-group of financial markets instruments, alongside fixed income. Taken in this sense, equities include regular stocks but also more complicated financial instruments such as equity derivatives.

Didn't answer your question?
Speak to our team