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What are Equities?

In the investment world, a share of stock (also referred to as equity share) represents a share of ownership in a corporation  (company).

Equity or equities is also known as Stocks outside of the United States. Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock typically carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.