Simply An equity investment is money that is invested in a company by purchasing shares of that company in the stock market. These shares are typically traded on a stock exchange.You Can Use it as an Trading instrument and as Well as investing Tool and It Also Provides Dividend.
In simple terms, a share is a percentage of ownership in a company or a financial asset. Investors who hold shares of any company are known as shareholders. You Becomes owner of that company by Holding the Shares of that Company
For example ; if the market capitalization of a company is Rs. 10 lakh, and a single share is priced at Rs. 10 then the number of shares to be issued will be 1 lakh in this Case if You Own One Share of this Company You will have the 0.001% ownership in that company. You are also Entitled to Get a profit out of the Company(Dividend)
These shareholders have voting rights in the company meetings. They are also entitled to get dividends(profit of the Company) declared by the board of directors. However, the dividend on these shares is not fixed and it may vary year to year depending on the company’s profit. Equity shareholders receive dividends after preference shareholders.
In Simple Terms You can Buy the Stocks at a Price and Sell it After Some Time With Higher Price than You Brought. For Example You Purchased 100 Shares of TATA @ 500 Today After a Year the Profitability of The Company Had Increased and the Price of Shares Have Shoot up to 600rs. In that Time You Can Sell The Entire Share of that Company and Can Earn a Profit of 100 per each Share and That Sums up your total Profit to 10000 Rs.
An Another way for earning income is my Trading the Equity in Stock Market. It's Similer to Investing the Difference is that in Trading you are Buying and Selling the Stock with in a Small gap of Period This Gap will be in Same Day. If you are Buying and Selling stock on same day then it is called the Intraday trading, you can also Buy the Stocks and Sell the Stocks After holding the Stocks for Some Days or Months accordingly to Your Wish and Preference
The Final way is by getting the Share of Profit of that Company normally known as Dividend. These are the Amount that Received by each shareholder of that company. Dividend is Paid by the Company out of the Profits of the Company. There Are companies that pay High Amount of Dividend and Small amount of Dividend. you can chose the Type of shares accordingly to your Preference If you are looking for a Regular Income You can go for purchasing Dividend paying Companies in the Market
As Per Companies Act 2013 Shares of the Company Can be transfered only in Dematerilized form. You have to Opening a Demat Account inorder to Buy Stocks. with the help of demat Account you can buy or sell Stocks. [ Demat Account can be Opened by the help of any Stock Brokers, Some are Upstox, Zerodha, Grow etc... ]
It entirely depends upon you. The Type of Company You Select. You have to Study the Company Before You Invest in that Company. Shares are Highly Risk category Investing and the Return from that investment is also High there is Possibility of having 0% to 10000% Return