Differences between Investing vs Trading
Differences between Investing vs Trading
Equinor is a multinational energy company based in Stavanger, Norway. The company results from a 2007 merger between Statoil and Norsk Hydro. Equinor shares are owned by the Government of Norway and the general public. As of 2017, the Norwegian Ministry of Petroleum and Energy owned 67% of Equinor. The remaining 33% is public stock, which is why the Equinor share price is of interest to traders.
As a company, Equinor primarily deals in petroleum. It operates in 36 countries and, in 2020, it was named by Forbes as the 169th-largest public company in the world. Equinor's top competitors are Royal Dutch Shell (RDS.A), ExxonMobil (XOM), and Chevron (CVX). The company also manufactures and markets petroleum products, including gasoline, diesel, jet fuel, heavy fuel oil, and lubricants. As part of its ongoing efforts to modernise and remain a major player in the energy sector, Equinor is investing some of its $90 billion+ in revenue into renewables, including biofuels and wind energy.
The Equinor share price is largely affected by energy supply and demand, as well as economic conditions, global events and politics. Annual revenue for 2021 was $90.92 billion, which represented a 98.45% increase from 2020.
The Equinor share price history shows a series of peaks and troughs between 2001 and today. The company was first listed on the Oslo and New York Stock exchanges in 2001. This signalled the start of the trader world’s interest in the Equinor share price.
It allowed Equinor to raise capital and expand into new countries, including Algeria, Nigeria and Angola. The Equinor share price opened at $4 in 2001. A spike in 2022 led to Equinor shares being worth $37, which represents more than a 700% increase since the company’s IPO.
You can buy shares in Equinor, or you can trade them. Buying shares is also known as investing. This means you’re investing directly in the company by purchasing an underlying asset (i.e. stock). Doing this means the value of your investment is directly tied to the value of the company. If the Equinor share price is increasing, the value of your investment will increase. If the Equinor share price is decreasing, the value of your investment will decrease.
Trading is different. When you trade Equinor shares, you’re speculating on price movements. This means you don’t own the underlying asset. Therefore, your fortunes aren’t necessarily tied to the ups and downs of the Equinor share price. Trading Equinor shares means you can go long if you believe their value will increase or go short if you believe their value will decrease.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Are Equinor shares a good investment?
If you're looking for a safe and reliable energy stock, then Equinor shares may be a good option for you. This company has a strong track record of consistent dividend payments, and its share price has been relatively stable in recent years. However, it's important to keep in mind that Equinor is a large oil and gas producer, so its fortunes are closely tied to the health of the global economy. If you're comfortable with that risk, then Equinor could be a good addition to your portfolio.
Who owns most Equinor shares?
The majority of Equinor shares are owned by Norwegian and international institutional investors, including pension funds, asset managers and life insurance companies. The Norwegian Government is the largest shareholder with a 67.2 percent stake. Other significant shareholders include BlackRock (4.4 percent), Vanguard (3.0 percent), Norges Bank Investment Management (2.5 percent) and DNB Asset Management (1.8 percent). Together, these five shareholders own almost 80 percent of Equinor's shares.
Do Equinor shares pay dividends?
Equinor shares do not pay dividends. However, the company does have a strong history of share price growth, which has provided shareholders with healthy returns over time. Equinor is also a reliable source of income for investors, thanks to its stable cash flow and strong balance sheet. If you're looking for a dividend-paying stock, then Equinor shares are probably not the right choice for you. However, if you're looking for a stock with strong fundamentals and a history of share price growth, then Equinor could be a good option to consider.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.