Equity holders, also known as shareholders, are individuals or entities that own shares in a company. By purchasing these shares, they gain a stake in the company's ownership and may benefit from its profits through dividends and capital appreciation. Equity holders typically have voting rights, allowing them to influence company decisions during shareholder meetings.
The value of an equity holder's investment can fluctuate based on the company's performance and market conditions. If the company does well, the share price may rise, increasing the equity holder's wealth. Conversely, if the company struggles, the share price may fall, potentially leading to financial losses for the equity holders.