Equity securities represent ownership in a company, typically in the form of stocks. When investors purchase equity securities, they gain a claim on the company's assets and earnings, which can lead to capital appreciation and dividends. These securities are traded on stock exchanges, making them accessible to a wide range of investors. Investing in equity securities can be a way to participate in a company's growth and success. However, it also comes with risks, as the value of stocks can fluctuate based on market conditions and company performance. Understanding these dynamics is crucial for making informed investment decisions.