Equity and Stocks
Equity represents ownership in a company, giving shareholders a claim on its assets and profits. It reflects the value of an investor’s stake, which can grow as the company expands and becomes more profitable. Stocks are financial instruments that signify a portion of this ownership, allowing investors to buy and sell shares in the market. Holding stocks can provide benefits such as dividends, voting rights, and capital appreciation over time. Investing in equity through stocks is a common way to participate in a company’s growth while also managing risks based on market fluctuations.