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The act of investing in equity is, simply put, purchasing full or part ownership of a corporation, property, or other asset, and accepting the associated risks and benefits.
Investing in a business, for example (either privately or through the stock market), means that you are entitled to certain privileges of ownership, including a share of the company's profits.
Equity investments can be sold at any time, with prices based on free market supply and demand, meaning that they can involve significant capital gains or losses. An equity investment's risk return ratio depends on a number of factors, including industry and current market conditions.
For a more detailed explanation of different kinds of equity investments, please use the links on the sidebar.