Introduction to Investment Varieties–Equity

Here we temporarily exclude deposit bank demand deposits, time deposits, and insurance and other income methods.


Equity is a kind of power. When you hold equity, you are a shareholder of a joint-stock limited company. According to the company’s regulations, you have voting rights or dividend rights.

The legal instrument of this power is the stock, and the stock is actually the company’s equity note, so buying a stock is actually buying a company’s equity, which is essentially investing in a company.

There are several ways to own stock in a company:

Become an employee of this company, and the company will give you stock.
Purchase stocks on the primary or secondary market.
Venture capital, before the company goes public, participates in the company’s equity investment. In fact, it is also exchanging money for a certain number of shares.

In addition, some companies will give employees options, which are actually a right to buy stocks. Options can be traded on the secondary market in some developed countries.

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