The Guide To Equity Investing: How You Can Get Started

One way to diversify your investment portfolio and potentially help build a recurring passive income stream is through pure equity investing.

What is Equity Investing?

Equity investing or “equity investments” are pretty straight forward. It’s another way to say stock investing, or buying pieces (“shares”) of ownership in a business.

Capital gain is a rise in the value of your shares that gives it a higher worth than the purchase price. Your gains however are not realized until you sell your shares.

Capital Gains

When you own shares of companies, many offer dividends for your investment with them. Dividends are the cash rewards paid to you as a part-owner of a business that is performing well.

Dividends

How Equities Compare To ETFs and Mutual Funds

ETFs can be bought cheaply compared to other funds. However, the downside is companies that perform poorly are not removed from the fund. They are also not very personalized to your specific goals.

ETFs

How Equities Compare To ETFs and Mutual Funds

A mutual fund is a collective pool of money provided by individual investors to invest in various securities like stocks and bonds, and is operated by a money manager.

Mutual Funds

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