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Community User Posted on 06:14pm 11-Oct-2019

What is an Equity Investment?

Equity investments mean to purchase stake in a company and become a partial owner of that company. 

Equity represents their respective ownership interests in that business. Business owners can raise capital by selling their equity or ownership interests in the business to other investors.

Investors buying the ownership interest (or equity) of a business, enjoy the gains and losses of the business activities and are known as shareholders. 

For example, if you purchase the shares of Reliance Industries, that means you become a shareholder and partial owner of Reliance Industries.

 

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