Question

Detailed explain Equity Investments?

Note: only text plagiarism free content

Answer 1

Equity investments is the type of Investment which is done in the shares of the companies either in the public company or private company. Investments in private company is known as Private Equity.

Ways to Invest in Equity-

1) Stocks

2) Mutual Funds

3) Derivatives

4) Private Equity

Risks involved in Equity-

1) Market risk: this risk arises due to multiple factors that affect the performance of the overall market.

2) Liquidity risk: this is a type of risk which is mainly found in Private Equity investments which are illiquid.

3) Political risk: The risk which arises due to political issues or the instability in the country.