What is the difference between Equity and American Oil?
Equities are stocks, in this case stocks in companies involved in the oil industry. Investors make money if stock prices rise, and lose money if stock prices fall. This is a safer investment that futures, but there is inherent risk. Should a company falter, or suffer a catastrophic event such as an oil spill, stocks plummet and investors lose money. American Oil clients are invested directly in the oil itself, not in the companies working with oil. See our knowledge center for more information.
