What Are Equities?

what are Equities

Equity indicates an ownership position in an asset. In most cases, equity indicates a total ownership stake in a company. So if, for example, you have a 10% equity in a company, you own 10% of that company and are entitled to 10% of the company’s profits. An equity investment is usually purchased with the expectation that the value of the investment will appreciate over time. For example, when you hold equity in a business, you expect the value of the business to increase in value so that you can benefit from your stake in the business. By holding equity, you are basically staking your money on the company’s future success.

What Are Equities? Conclusion

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To show What Are Equities readers the types of assets that can be invested in.