💼 What Is Equity Investment?
Equity investment refers to buying ownership in a company, usually in the form of shares (stock). When you invest in equity, you become a partial owner (shareholder) of that business.
🧾 Key Features
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✅ Ownership stake: You own a portion of the company.
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📈 Returns: You earn money through capital gains (stock price increases) and dividends (a share of profits).
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🗳️ Voting rights: Shareholders often have the right to vote on major company decisions.
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📊 Risk & Reward: High potential returns — but also higher risk compared to debt investments.
💸 Types of Equity Investments
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Public Equity
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Buying shares of publicly traded companies on stock exchanges (like Apple, Tesla, etc.).
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Liquid and easy to trade.
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Private Equity
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Investing in private companies (not listed on stock exchanges).
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Often done by venture capitalists or private equity firms.
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Illiquid and riskier — but with potential for high returns.
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Direct Investment in Startups or Small Businesses
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High-risk, high-reward territory.
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May come with more influence in management.
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📊 Why Investors Choose Equity
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Potential for long-term growth
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Ownership in companies they believe in
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Hedge against inflation
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Portfolio diversification
⚠️ Risks to Know
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Market volatility can cause significant losses.
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No guaranteed returns (unlike bonds).
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Companies can go bankrupt — wiping out equity.
