What is the Full Form of EQ in the Share Market?

The EQ full form in the share market is Equity. The shareholder’s equity refers to the amount of money that would be returned to all of the shareholders of the company, in case the assets of the company were paid off after its liquidation. It can also refer to the value of residual ownership of the company after we reduce the debts connected with the asset.

How does shareholder equity work

Equities are high-return investment options and, thus, are very popular among individuals. While investing in the stocks of the company, the investor can attain profits through capital gains, or appreciation of stock price. The formula to calculate the value of shareholder’s equity is their total assets minus the total liabilities.

Advantages of Investing in Equity Shares

Investing in equity shares is one of the best ways to attain high returns to investors, both through capital appreciation and dividend earnings. The investor can gain tremendous returns by investing in equity shares. Also, the investor can gain all services with respect to stock trading and financial investments through the stock exchanges. Above all, equity serves as an excellent measure to diversity the investment portfolio of the investors.