Equities - Financial definition
Concise definition of the term equities
Equities, also known as stocks, represent ownership shares in a company, entitling the holder to a proportionate claim on its assets and earnings.
Comprehensive definition of the term equities
Equities are financial instruments that represent ownership stakes in publicly traded companies, allowing investors to participate in the company's growth and profitability. Unlike bonds, which represent debt obligations, equities offer shareholders voting rights at annual general meetings and potential dividends as a reward for their investment. Investors can purchase equities through stock exchanges or over-the-counter markets, and they may trade them actively to capitalize on price fluctuations or hold them long-term as part of a diversified investment portfolio.