The total capital of business is divided into smaller units known as equity share. When an investor subscribes to the equity share of a company, he/she becomes a shareholder. One can think of equity as one’s degree of ownership in any asset after subtracting all debts associated with that asset. Investors earn returns in equity investing by way of dividends and capital appreciation. Along with monetary benefits, Equity shareholders also get voting rights in critical matters of the company.
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