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When you buy equity securities, you have to take into account the share price. A share price is the relative value given to the corporation’s earning potential based on certain factors which include economic condition of the corporation in the industry and overall economy, earning projections of the corporation; projected growth, financial ratio analysis and corporate stage of development. The overall future earning potential of a corporation is done through fundamental and technical analyses which include charting and other financial indicators.
Basically when you invest in the equity market, that is when you buy the shares of a corporation, the value of share is a representation of the current market value of the corporation. There are various classes of equity for the investor to consider. There are basically three types of equity -- common shares, preferred shares and warrants.
Common shares allow the stockholder to earn income through the payment of dividends and capital gains made on a per share basis. The stockholder is responsible for electing the Board of Directors, appointment of senior officials in the corporation, selecting an auditor for the financial statements, and other matters of corporate governance.
Under preferred stocks, the stock of the company has a defined dividend and the holder has prior claim on income when compared to a common stockholder. Should a corporation wind up its operations, the preferred stockholder will be paid first. Also, preferred stockholders will be paid first when the dividend is declared and only thereafter will common stockholders be paid.
Warrants are a form of long-dated option which allows the owner to participate in capital gains or losses of a corporation without actually buying the common stock. A warrant has an exercise price and expiration date. Exercise price refers to the price at which the holder may convert the warrant into common shares; and expiration date is the last date on which the warrant may be converted to common shares. Usually the expiration date is more than two years from the issuance of the warrant so that the investor has a long-dated option on the common stock.
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The Asian equity market is quite large and is growing rather fast. Since 1990, the capitalization of Asian equity market has more than doubled in terms of US dollar to $13.7 trillion. The Asian equity market is dominated by Hong Kong SAR, Singapore and Japan, which account for two-thirds of Asian equity assets. 
