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.
Translation: Los precios de los valores de capital pueden fluctuar salvajemente según las condiciones del mercado.
Investing in an equity security can offer higher returns compared to fixed-income securities.
Translation: Invertir en un valor de capital puede ofrecer mayores rendimientos en comparación con los valores de renta fija.
Many investors diversify their portfolios by including different types of equity securities.
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:
Translation: Cuando todos compran los mismos valores de capital, se crean operaciones abarrotadas que pueden llevar a correcciones del mercado.
"Blue chip stocks"
Translation: Invertir en valores de capital como acciones de primera categoría tiende a generar rendimientos estables a lo largo del tiempo.
"Market capitalization"
Translation: Los valores de capital se categorizan según su capitalización de mercado, diferenciando entre acciones de gran capitalización y de pequeña capitalización.
"Going public"
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.
This comprehensive overview provides insight into the term "equity security," its usage, meaning, and relevance within the realm of finance and investment.