What Is Equity? A Basic Guide
As an investor, you've probably heard the term "equity" before, but you may not know what it means. Equity is a key concept in finance, and understanding what it is and how it works is essential to making informed investment decisions. In this guide, we'll break down the basics of equity and explain how it affects your investments . What Is Equity? At its most basic level, equity refers to ownership in a company or asset. In the context of investing, equity typically refers to stocks or shares of ownership in a publicly traded company. When you buy a share of a company's stock, you are buying a small piece of ownership in that company. For example, if you buy 100 shares of Apple stock, you own a small piece of the company, and you have a say in the company's decision-making processes. The more shares of a company's stock you own, the larger your ownership stake in the company. Best Accountant in London How Does Equity Work? Equity represents the residual ...