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What is an equity investment?

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Written by Tic Nica

An equity investment means buying a share of a company's ownership.

When you make an equity investment, you become a shareholder of that company, which gives you.

  • a percentage of ownership in the company;

  • potential money earning if the company grows in value (through dividends or selling your shares at a higher price);

  • certain rights, such as receiving updates or voting on important company matters (depending on the share class);

  • in simple terms: you invest money → you own a piece of the company → you benefit if the company succeeds.

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