Equity Shares

Equity shares, also known as common shares or ordinary shares, represent ownership in a company and entitle shareholders to a portion of the company’s profits, typically in the form of dividends. Shareholders also have voting rights, allowing them to participate in key decisions such as electing the board of directors and approving major corporate actions. Equity shares are traded on stock exchanges, and their value fluctuates based on the company’s performance and market conditions.

Example

Purchasing equity shares of a company like Microsoft gives the investor a stake in the company, potential dividend income, and voting rights at shareholder meetings.