Equity Investment

Equity investment involves purchasing shares or ownership stakes in a company. When you invest in equity, you contribute capital in exchange for potential growth in the company's value. If the company performs well, your shares may increase in worth, leading to profits when sold. Additionally, you might receive dividends, which are payments made to shareholders from the company’s earnings. However, equity investments come with risks; if the company underperforms or loses value, so can your investment. Essentially, equity investing allows you to share in a company's success or struggles.