Equities represent ownership in a company, typically in the form of stocks. When you buy shares of a company's stock, you become a partial owner and can benefit from its growth and profits. Investors often purchase equities to achieve capital appreciation and dividends, making them a popular choice for building wealth over time.
The value of equities can fluctuate based on various factors, including market conditions, company performance, and economic indicators. While investing in equities can offer high returns, it also comes with risks, as stock prices can be volatile and may lead to losses if the market declines.