Investing
Equity
Also known as: Shares, Stocks
Ownership in a company; buying equity means owning a small slice of a business.
Equity is ownership. A share of stock is a tiny piece of a real company, entitling you to a slice of its profits and growth.
Over long periods equity has been the best-performing asset class in India, comfortably beating FDs and inflation.
The catch is volatility. Prices swing hard in the short run, so equity is for money you won't touch for at least 5-7 years.
For example
Owning one share of a company means if it grows and its value doubles over years, your slice roughly doubles too, minus the bumpy ride.