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Learning Center > Strategies for Investors > Equity Investing   Printer Friendly VersionPrinter Friendly Version
Equity Investing

When you invest in a stock, you are essentially buying part-ownership of a company, including its physical plant, output, and everything it owns. As a shareholder, you are entitled to a proportionate share of the corporation's profits and assets.

Businesses issue stock to raise capital. By issuing stock, a company generally can raise more capital than it could borrow. In addition, the company does not have to make periodic interest payments to creditors or make principal payments.

Conversely, by issuing stock, the principal owners have to share their ownership with other shareholders. And, shareholders have a voice in policies that affect the company's operations.

Types of Stocks
There are many types of stocks available for investors. Learn about the differences.

Risk
In the financial markets, pursuing potentially higher returns often means accepting higher levels of risk.
Market Capitalization
Why is market capitalization important when selecting stocks?
 Market Indicators
Useful information about these widely recognized benchmarks.
 
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Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus contains this and other important information about the fund. Contact your financial professional for a prospectus and read it carefully before investing.

An investment in our money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds.

Mutual fund investing involves risks. The investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than the original cost. Keep in mind that asset allocation and diversification do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company and member SIPC. Prudential Fixed Income Management and Prudential Real Estate Investors are units of Prudential Investment Management, Inc (PIM). Quantitative Management Associates, Jennison Associates, and PIM are registered investment advisors and Prudential Financial companies. Prudential Investments, Prudential Financial, the Rock Prudential logo, Jennison Associates, and Jennison are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.

Mutual Funds: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.

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