Common use of Equities Clause in Contracts

Equities. When you (or, us, on your behalf) buy or subscribes for equities issued by a company, you are buying a part of that company and you become a shareholder in it, which usually means you have the right to vote on certain issues. You can either buy new shares when the company sells them to raise money (through an initial public offering) or buy existing shares which are traded on the stock market. The equity of a company as divided among individual shareholders of common or preferred stock. The aim is for the value of your shares to grow over time as the value of the company increases in line with its profitability and growth. In addition, you may also receive a dividend, which is income paid out of the company’s profits. Longer- established companies usually pay dividends whilst growing companies tend to pay lower, or no, dividends (with these a shareholder would typically be hoping for better capital growth). The value of equities may fall as well as rise and as a class of investment, equities are typically more volatile than other common investment types such as bonds or cash. Equities as a class have historically outperformed other types of investments over the long term. Individual stocks prices, however, tend to go up and down more significantly over the short term. These prices movements may result from factors affecting individual companies or industries, or the securities market as a whole. The value of equities and equity-related securities can be affected by daily stock markets movements. Other influential factors include political, economic news, company earnings and significant corporate events. If a company goes into liquidation, its shareholders rank behind the company’s creditors (including its subordinated creditors) in relation to the realisation and distribution of the company’s assets – with the result that a shareholder will normally only receive any money from the liquidator if there are any remaining proceeds of the liquidation once all of the creditors of the company have been paid in full. In the short term, shares may go up and down in value and this can occasionally be very significant. However, if you have a wide range of shares, it reduces the likelihood of losing all or most of your money. In addition to the above general risks, certain types of equity investment result in additional risks. The types of equity investment include the following, but are not limited to: A 'xxxxx share' is a loose term used to describe shares which have a speculative appeal because of their low value. If the equities in which you have invested include xxxxx shares, you should be aware that there may be a significant difference between the purchase and sale price of such shares and, if you need to sell the shares, you may get back much less than you paid for them.

Equities. When you (or, us, on your behalf) buy or subscribes for equities issued by a company, you are buying a part of that company and you become a shareholder in it, which usually means you have the right to vote on certain issues. You can either buy new shares when the company sells them to raise money (through an initial public offering) or buy existing shares which are traded on the stock market. The equity of a company as is divided among individual shareholders of common or preferred stock. The aim is for the value of your shares to grow over time as the value of the company increases in line with its profitability and growth. In addition, you may also receive a dividend, which is income paid out of the company’s profits. Longer- established companies usually pay dividends whilst growing companies tend to pay lower, or no, dividends (with these a shareholder would typically be hoping for better capital growth). The value of equities may fall as well as rise and as a class of investment, equities are typically more volatile than other common investment types such as bonds or cash. Equities as a class have historically outperformed other types of investments over the long term. Individual stocks prices, however, tend to go up and down more significantly over the short term. These prices movements may result from factors affecting individual companies or industries, or the securities market as a whole. The value of equities and equity-related securities can be affected by daily stock markets movements. Other influential factors include political, economic news, company earnings and significant corporate events. If a company goes into liquidation, its shareholders rank behind the company’s creditors (including its subordinated creditors) in relation to the realisation and distribution of the company’s assets – with the result that a shareholder will normally only receive any money from the liquidator if there are any remaining proceeds of the liquidation once all of the creditors of the company have been paid in full. In the short term, shares may go up and down in value and this can occasionally be very significant. However, if you have a wide range of shares, it reduces the likelihood of losing all or most of your money. In addition to the above general risks, certain types of equity investment result in additional risks. The types of equity investment include the following, but are not limited to: A 'xxxxx share' is a loose term used to describe shares which have a speculative appeal because of their low value. If the equities in which you have invested include xxxxx shares, you should be aware that there may be a significant difference between the purchase and sale price of such shares and, if you need to sell the shares, you may get back much less than you paid for them.