Equity vs Equity share - Commerce Ka Ladka -commerce in easy language

Equity vs Equity share

Equity means The value of an asset after all debts and other liabilities have been deducted.

Equity refers to the ownership stake in a company. It is calculated as the total assets of a company minus its total liabilities. Equity can be held by shareholders, employees, or other stakeholders.
Equity share is a type of security that represents a unit of ownership in a company.



Equity shares, also known as common shares or ordinary shares, are a type of security that represents ownership in a company. When an investor purchases equity shares, they are buying a portion of the ownership in the company and become a shareholder.

 Equity shares are issued by companies to raise capital from investors. They give investors the right to a share of the company's profits and assets, and the right to vote on corporate decisions.



In other words, equity is the overall ownership of a company, while equity share is a specific type of security that represents a portion of that ownership.