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List the characteristics of an equity investment.

List the characteristics of an equity investment.

Answers


caroline
Issued by corporations.
Holders entitled to a distribution (dividend) declared from profits.
Potential for high returns relative to other asset classes.
Commensurate risk of capital losses.
Lowest ranking finance issued by companies.
Initial running yield low but has potential to increase with dividend growth.
Dividends and capital values have the potential to grow in nominal terms during times of inflation.
Return made up of income return and capital gains.
Marketability depends on the size of the issue.
Ordinary shareholders receive voting rights in proportion to their holding.
carol1 answered the question on May 9, 2018 at 16:47

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