equity securities

Equity securities represent ownership in a company, typically in the form of stocks or shares. When you buy an equity security, you become a partial owner of that company and may benefit through dividends (a share of profits) and potential increases in the stock’s value. Equity investments carry higher risk compared to other securities like bonds, but they also offer the possibility of greater returns. They are traded on stock exchanges, and their value fluctuates based on the company's performance and market conditions. Essentially, equity securities give investors a stake in the company's success.