What Are Equities in the Stock Market?
Getting down to the basics of the stock market: What are equities and what are their pros & cons?


Updated June 18, 2024
Whether you are watching CNBC or reading The Wall Street Journal, you might come across the term equities. This is also commonly referred to as stocks or shares representing ownership in publicly traded companies. Equities are bought and sold on stock exchanges.
Note: Fortrade offers the ability to trade with the price changes of products with CFDs and NOT to buy/sell ownership of the products themselves.
Benefits and Risks of Equities
Benefits
- The possibility of capital appreciation
- Dividends could provide potential future returns
- You can be a part of one business's future success
Risks
- Possibility of loss
- The price volatility (during the coronavirus pandemic, stocks crashed, and equities slid).
- Emotional trading, or impulsive decisions on fear or greed rather than sticking to your objectives.
» Are there trading terms you don't understand? Check out our helpful glossary for a quick explanation
Ownership and Investment Essentials
Let's be honest: trading equities is not for everyone, which is why many will use mutual funds or depend on a financial professional to make these decisions. But suppose you are equipped with the knowledge fundamentals and can compose yourself during ultra-bullish and ultra-bearish times, you could be able to turn a potential profit.
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