Equity securities represent ownership in a company, typically in the form of stocks. When individuals purchase equity securities, they buy shares that give them a claim on the company's assets and earnings. This ownership can provide investors with potential profits through dividends and capital appreciation if the company's value increases. Investing in equity securities carries risks, as the value of shares can fluctuate based on market conditions and company performance. Investors may also have voting rights in corporate decisions, depending on the type of shares they hold, such as common stock or preferred stock.