Equity

Equity

👉 Equity means owning a part of a company by buying its shares (or stocks).

When you buy equity shares, you become a partial owner of the company and have a claim on its profits and assets.

Why Invest in Equity?

• Potential for high long-term returns
• Ownership in successful companies
• Receive dividends
• Easy to buy/sell on stock exchanges
• Acts as a hedge against inflation

Featuers Of Equity

• Ownership in Company – Buying equity shares makes you a partial owner of the company.
• Capital Appreciation – Earn profit when the share price increases over time.
• Dividend Income – Companies may distribute a portion of their profit as dividends to shareholders.
• Market Linked Returns – Returns depend on company performance and stock market conditions.
• Liquidity – Shares can be bought or sold easily through stock exchanges (NSE, BSE, NYSE).
• Voting Rights – Shareholders often get voting rights in company decisions (for common shares).
• Price Volatility – Share prices can fluctuate widely in short periods due to market trends or news.
• Regulated Market – Traded under strict regulations by authorities like SEBI (India) or SEC (US).