equity security - meaning, definition, translation, pronunciation
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equity security (english) - meaning, definition, translation, pronunciation


Part of Speech

Phonetic Transcription

Meaning and Usage

Equity security refers to a type of financial instrument that represents ownership in a company and constitutes a claim on a part of the company's assets and earnings. Common forms of equity securities include stocks and shares. The term is frequently used in financial and investment contexts, and it is prevalent in both oral and written discussions, particularly in finance and investment analysis.

Equity securities are particularly important for investors who seek capital appreciation and dividends, and they carry risks such as market volatility.

Example Sentences

  1. Equity security prices can fluctuate wildly based on market conditions.
  2. Translation: Los precios de los valores de capital pueden fluctuar salvajemente según las condiciones del mercado.

  3. Investing in an equity security can offer higher returns compared to fixed-income securities.

  4. Translation: Invertir en un valor de capital puede ofrecer mayores rendimientos en comparación con los valores de renta fija.

  5. Many investors diversify their portfolios by including different types of equity securities.

  6. Translation: Muchos inversores diversifican sus carteras incluyendo diferentes tipos de valores de capital.

Idiomatic Expressions

While "equity security" is not used in many idiomatic expressions, it is often discussed in the context of finance-related idioms. Here are some relevant expressions and sentences:

  1. "Crowded trades"
  2. When everyone is buying the same equity securities, it creates crowded trades that can lead to market corrections.
  3. Translation: Cuando todos compran los mismos valores de capital, se crean operaciones abarrotadas que pueden llevar a correcciones del mercado.

  4. "Blue chip stocks"

  5. Investing in equity securities like blue chip stocks tends to yield stable returns over time.
  6. Translation: Invertir en valores de capital como acciones de primera categoría tiende a generar rendimientos estables a lo largo del tiempo.

  7. "Market capitalization"

  8. Equity securities are categorized based on their market capitalization, distinguishing between large-cap and small-cap stocks.
  9. Translation: Los valores de capital se categorizan según su capitalización de mercado, diferenciando entre acciones de gran capitalización y de pequeña capitalización.

  10. "Going public"

  11. Companies often issue equity securities when they decide to go public and sell shares to the public.
  12. Translation: Las empresas a menudo emiten valores de capital cuando deciden cotizar en bolsa y vender acciones al público.

Etymology

The term "equity" derives from the Latin word "aequitas," which means fairness or justice. The word "security" comes from the Latin "securitatem," meaning safety or surety. In the context of finance, the term evolved to indicate ownership interest in a firm, reflecting both the rights to profits and a claim against the company's assets.

Synonyms

Antonyms

This comprehensive overview provides insight into the term "equity security," its usage, meaning, and relevance within the realm of finance and investment.



25-07-2024