what is equities

Equity is a term used in finance to describe ownership interest in property that may be offset by debts or other liabilities). It is measured by subtracting liabilities from the value of the assets owned. Equity can apply to a single asset, such as a car or house, or to an entire business). In the context of the stock market, equities are simply shares in the ownership of a company. Equity investors purchase shares of a company with the expectation that they will rise in value in the form of capital gains and/or generate capital dividends. If an equity investment rises in value, the investor would receive the monetary difference if they sold their shares, or if the companys assets are liquidated and all its obligations are met. Equities can strengthen a portfolio’s asset allocation by adding diversification. Equity investing is the business of purchasing stock in companies, either directly or from another investor, on the expectation that the investment will grow).