Equities, also called stocks and shares, are a percentage of a company whose ownership has been divided up and shared. Publicly traded companies list their shares on an exchange for anyone to buy.
Companies list their shares on an exchange to raise additional capital to fund their business operations.
Many of the world’s major corporations are publicly listed, which allows investors to buy shares across a diverse range of industries such as technology, financial, retail, mining, pharmaceutical, etc. so that they can diversify their investment portfolio.
Investors buy shares to profit from a company’s growth. When an investor buys a share in a company he or she expects it to increase in value so that he/she can sell it at a higher price to make a profit. However company shares don’t always go up in value and trading in today’s stock market happens extremely fast.
When you buy a share you must register your ownership on a company’s shareholder register or share certificate. This can be done electronically however when you sell your share it generally takes 3 days to “settle”, meaning for the funds to be credited to your account.
This is why CFDs have become popular. Initially used by hedge funds and City professionals smaller investors soon realized their potential to make active trading simpler. Depending on the position you take you can profit if the share price of the company you’re trading rises or falls. If you trade with CS Capital Markets we won’t charge you a commission** fee for every trade you make and when you close your trades the profit or loss will be immediately reflected in your account balance.
**On the majority of CS Capital Markets accounts.
Trading some companies’ shares isn’t always practical for individual investors. For example at the time this page was written the price of the technology company Google cost $586.54 US Dollars. To trade one share you would have to invest $586.54 for every share you wanted to buy, and your stock broker might charge a commission fee on top each time you buy or sell the share. CFDs trade on margin, which means that you do not need to deposit the full price of the share to open the trade. To trade Google with CS Capital Markets you would only need to deposit 5% of your trade. Trading equity CFDs with CS Capital Markets gives you a greater exposure to the market and makes share trading more liquid. We offer a broad selection of UK, European, and US equities across multiple industries. You can find our full equities product offerings on our Market Information Sheets . You can find the full list of the international equities you can trade with CS Capital Markets on our Market Information Sheet. If you have never traded equities you can learn how to use our platform with a demo account while improving your trading knowledge on our Trading Skills page. To start trading equities commission free* now open a live account.
*Please note that this policy is subject to change.