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What are stocks, and what makes a good equity investment?
By Endowus Insights  •  August 5, 2022
Stocks, also known as equities, are shares of publicly listed companies in the stock exchange.  When you buy a company’s share of stock, you become a shareholder of the company. Your equity interests in the company are determined by the number of shares you own in proportion to the number of outstanding shares. For example, if a company has 1,000 shares of stock outstanding and you own 100 shares, you will have a claim to 10% of the company's profits. 

How are stocks created for trading in the public markets?

As a privately-owned company’s business expands, it may need to raise more money than what a bank can loan it to finance that growth. One way to raise this money is if the company sells or issues its shares through a process called an initial public offering (IPO).  After an IPO, the company becomes publicly listed on a stock...
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By Endowus Insights
Headquartered in Singapore, Endowus is the first and only digital advisor for CPF, SRS, and cash savings, helping everyone invest holistically, conveniently, and with expert advice at the lowest cost possible.
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