equity contracts

Equity contracts are agreements that outline the ownership rights and responsibilities between investors and a company, typically involving shares of stock. When you hold equity in a business, you own a part of it proportionate to your shareholding. These contracts specify how ownership is transferred, how profits (dividends) are distributed, and how voting rights are exercised. They are essential in startup investments, joint ventures, or partnerships where stakeholders need clear terms on their financial interests and governance roles, ensuring transparency and aligning interests among all parties involved.