Understanding Equity in Business: A Beginner’s Guide to Investing

When you hear the term “equity in business,” it can sound a bit intimidating, especially if you’re new to the world of investing. But don’t worry! Let’s break it down into simple concepts that can help you understand what equity means and how it plays a role in investing.

What is Equity?

【invest36.com】 What is Equity in Business? Understanding the Basics for Beginners -NLlITuj

2024-07-17 10:36 | 3 minute read

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What is Equity in Business? Understanding the Basics for Beginners

When starting your journey into investing, one of the fundamental concepts you’ll encounter is “equity.” Understanding equity in business is vital, whether you’re considering investing in a company, starting your own business, or simply trying to make sense of financial news. Let’s break it down in a friendly and straightforward way.

【invest36.com】 Understanding Equity in Business: A Beginner's Guide -JhXLVdYlU

2024-07-17 08:30 | 3 minute read

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Understanding Equity in Business: A Beginner’s Guide

When you hear the term “equity” in the context of business, it might sound a bit complex at first. But don’t worry! I’m here to break it down for you in a friendly and easy-to-understand way.

At its core, equity refers to ownership. In business, equity represents the value of an owner’s interest in a company after all liabilities (like debts) have been paid off. Think of it as what you truly own in a company. If you own shares of a company, you have equity in that business. This is important because owning equity can lead to profits through appreciation in the value of shares and dividends.

【invest36.com】 What Does 'Stock' Mean in Business? A Friendly Guide for Beginners -JljBqlFQgA

2024-06-08 10:59 | 3 minute read

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What Does ‘Stock’ Mean in Business? A Friendly Guide for Beginners

Understanding the term “stock” is a fundamental step in your investment journey. So, let’s break it down in a friendly and straightforward way!

What is Stock?

At its core, stock represents ownership in a company. When you buy a share of stock, you are purchasing a small piece of that company. For example, if you buy stock in a company like Apple, you technically own a fraction of Apple. This ownership means you can benefit from the company’s growth and profits, primarily through capital gains and dividends.