Is it good to invest in equity?

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Solution

Yes, it’s good to invest in equity. Having a long-term goal while investing in equity is the keynote. Since market volatility is unavoidable individuals who invest in stock can reap profits only in the long run.

Also read:

Debt to Equity Ratio

What Is Equity?

What Are Equity Shares?

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India allows foreign firms to make 100 percent equity investments in many sectors.

Q. ' Rakesh Steel Lts.' is a large and creditworthy company manufacturing steel for the Indian market. It now wants to cater to the Asian market and decides to invest in new hi-tech machines. Since the investment is large, it requires long term finance. It decides to raise funds by issuing equity shares. the issue of equity shares involves huge flotation cost. To meet the expenses of flotation cost the company decides to tap the money market.

Name the money market instrument the company can use for the above purpose.

A company's earning before interest amd tax is Rs. 7 lac. It pays 10% interest on its debt. Total investment of company is Rs. 50 lac. Advise company whenever it should included debt or equity to raise its capital.

Do investors who prefer taking the risk for higher returns opt for investing in equity shares?

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Is it good to invest in equity?

Yes, it’s good to invest in equity. Having a long-term goal while investing in equity is the keynote. Since market volatility is unavoidable individuals who invest in stock can reap profits only in the long run. Also read: Debt to Equity Ratio What Is Equity? What Are Equity Shares?

Yes, it’s good to invest in equity. Having a long-term goal while investing in equity is the keynote. Since market volatility is unavoidable individuals who invest in stock can reap profits only in the long run.

Also read:

Debt to Equity Ratio

What Is Equity?

What Are Equity Shares?