ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Equity and stock are synonymous terms. However, equity can take on slightly different meanings for a business and an investor. For example, shareholders’ equity is the difference between a company’s assets and its liabilities, whereas shares of stock represent shares an individual owns in a company.

Detailed explanation-2: -Two common types of equity include stockholders’ and owner’s equity.

Detailed explanation-3: -Definition and Example of Stocks For example, if a company has 100, 000 shares, and you buy 1, 000 of them, you own 1% of the company. Owning stocks allows you to earn more from the company’s growth and gives you shareholder voting rights. Alternative names include shares and equity.

Detailed explanation-4: -Equities are the same as stocks, which are shares in a company. That means if you buy stocks, you’re buying equities.

Detailed explanation-5: -Equity refers to the total ownership of the company – it is what remains of the company’s assets once the liabilities are all paid off. Shares are simply a portion of the equity. However, there are types of shares other than equity such as preference shares, advisory shares etc.