Equity trading
From Wikipedia, the free encyclopedia
Equity trading is a multi-faceted term to describe the buying and selling of equity securities (fractional ownership in a government registered corporation), whether as principal or agent (intermediary acting on behalf of principal).
Trading On Equity - The rate of dividend on preference shares is fixed. Hence, in years of prosperity and more profit equity shareholders ejoy high rate of earnings with the presence of preference shares in the capital structure.
- Proprietary/principal trading - trading for one's own profit or loss
- Agency trading - trading on behalf of a client
- Market making - a hybrid of agency/proprietary trading, where an intermediary will take positions ("principal") on behalf of clients ("agency")