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Equities

The first possibility is to buy ordinary shares of companies - often referred to as 'equities'. These are literally a share in the ownership of companies in the private sector, and are essentially risk capital. The companies make no guarantee to pay dividends on the shares, and there is no certainty that a shareholder will get his capital back. Were the company to lose all its capital, for example, through trading at a loss, through bad management, or from the uncertainties of a changing market for its product, the shares could become practically worthless, and would certainly pay no dividend.Equities


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