Equity ownership refers to the possession of shares in a company, which represents a claim on part of the company's assets and earnings. Individuals or entities that hold equity are known as shareholders, and they can benefit from capital appreciation and dividends. The more shares one owns, the greater their stake in the company, which can influence decision-making and governance. This form of ownership is crucial for businesses as it allows them to raise capital for growth and operations. Equity ownership can also lead to increased wealth for shareholders if the company performs well, making it a popular investment strategy among individuals and institutional investors alike.