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Equities

Equities Meaning:
In stock market terminology, the term Equities refers to the ownership interest of a company represented by shares of stock issued by that company. Equities make up the principal source of corporate financing in capitalist economies.

For example, Equities are issued by corporations and the fixed amount of equity issuance allowed is specified in the companyís charter at the time of incorporation. The corporate charter sets the guidelines for the amount of equity that can be sold, as well as the amount of debt the corporation can assume in the course of the corporationís growth cycle. While many corporations choose to go public and offer a percentage of ownership to the general public, some corporations stay private by issuing stock only to private investors. Equities fall into several main categories, which include common stock, preferred stock and convertible preferred stock.