What is an equity investment?
What is an equity investment?
An equity investment means buying a share of a company's ownership.
When you make an equity investment, you become a shareholder of that company, which gives you.
-
a percentage of ownership in the company;
-
potential money earning if the company grows in value (through dividends or selling your shares at a higher price);
-
certain rights, such as receiving updates or voting on important company matters;
-
In simple terms: you invest money → you own a piece of the company → you benefit if the company succeeds → you can sell the participation in a liquidity event.