Equities refer to stocks of a company measured in number of shares. When you buy a company’s stock, you become a part owner, or shareholder, of that company. Very often, the terms ”equities”, “stocks”, “shares” and “securities” are used interchangeably.
Shares are bought and sold on the stock exchange. In Singapore, this refers to the Singapore Exchange (SGX). A key benchmark for the Singapore market is the Straits Times Index (STI), which tracks the performance of the top 30 companies listed on the SGX, in terms of market capitalisation listed on the SGX.
The minimum number of shares an investor can buy or sell varies from market to market. In Singapore, the minimum transaction is typically in board lots of 100 shares, while other markets may allow investors to buy single shares
Ease of trading
Stocks can be easily bought or sold on the stock exchange.
Ownership
Buying shares of the company represents an ownership and allows you to benefit from the company's growth and profits.
Price transparency
Prices are reflected in real time on the stock exchange, allowing investors to take action at their desired prices.
Risks
Capital risk
Stock prices can rise or fall due to a company performance or the macroeconomic factors affecting the market at large.
Volatility risk
Stock prices can be subject to large movements in the stock market on a daily basis. The higher the volatility, the higher the risk.Constant monitoring of market movements and stock prices may be required in times of high volatility.
On the DBS Online Equity Trading platform
To open a DBS Wealth Management Account for trading
Phone - 1800 221 1111
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