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Equity refers to the ownership value in an asset or company after all liabilities (debts) are subtracted. In the context of stocks, equity represents the ownership interest of shareholders in a company, calculated as the difference between the company’s assets and liabilities.
Over time, investing in shares can provide higher returns compared to other investment options like savings accounts or bonds.
By buying shares, you become a part-owner of the company, which means you can share in its success through profits (dividends) and growth in value.
Shares are easily bought and sold on the stock market, providing flexibility when you need to access your money.
Equity has the potential to grow your wealth over the long run, as the value of the company increases.