Finance glossary

Equity

An equity is a ownership title representing a fraction of the share capital of a company. By purchasing equities of a company, the investor becomes a "shareholder". They are associated with the risks and benefits.

An equity grants its holder the right to information, the right to vote in general meetings of shareholders, and the right to receive a dividend if applicable. The amount of the dividend paid depends on the decisions made in the general meetings of shareholders, which are based in particular on the profits made by the company in the past year.