Concept
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In equity markets,institutions can raise capital by selling a portion of the company –which is divided into smaller components called shares/securities –then issuing these to investors. The investors are willing to purchase these shares in anticipation of dividend payouts (i.e. retained company earnings which are deferred to shareholders) and/or share price gains (i.e. capital gains).The most prominent form of instrument traded in equity markets are securities (a.k.a shares or stocks) that are available as:•Preference•Common