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Equities Definition [What Are Equity Share In Investing]

What is the meaning of equities in stock market. What is Equity Trading and Equities Investing? If you want to know about equities on the internet, then read this article completely. Here you will find articles related to investing and trading on our website. If you also want to earn 700$+ a month by trading, then on our website you will find many articles related to investing and cryptocurrency, bitcoins, investing.

Equities Definition [What Are Equity Share In Investing]

Equities - Equity means the ownership of a business. We know that to buy a share of a company means to buy a small part of that company and in the language of investing, this small part is called equity. In other words, by buying the shares of a company, we buy the equity of that company.
Equities Definition [What Are Equity Share In Investing]
Equities Definition [What Are Equity Share In Investing]

For Ex.
Suppose 5 friends started a company together, all the friends invested Rs 2,2 crore in the company and then started the business with 10$ Crore and in the company's legal registration, they divided the company into 1Crore Shares and they decided Said that all the founders of the company would do the same work in the company. Therefore, the share of the company was also divided equally among all the friends in 20,20 lakh $. So every single founder got 20 lakh shares out of 1 crore shares of the company "We can say that 100% of the ownership/equities of the company is with the founder and its total value at present is 10 lakh doller because The company has 5 founders and each one has 20% equity in the company".

Now let us assume that the company needed Rs 5 crore to develop the company. For this, the founders of the company sold 50% equity of the company i.e. 50 lakh shares in the IPO (Initial Public Offering) . And took a total of 5 crore doller from the public.

Means - If you buy 1 Lakhs Shares = 1% Equities [and you got 1% ownership of the company.]
50 Lakhs Share = 50% Equities
Investing refers to the ownership of a company. The company sells its equity to the public. The more shares an investor buys in a company, the more equity he has in the company. That is why we call stock market as equity market, stock investing is called equity investing, and stock trading is called equity trading.

Note - Whenever you buy the stocks of a company, you buy the equity of that company.

Today we told you what is meant by equities in investing. If you liked this article, then definitely share it with your friends so that everyone can know about the stock market in a better way and start earning today.
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