What are equity shares?

Equity shares represent ownership in a company and are the most common form of shares issued to raise capital. Holders of equity shares are considered part-owners of the company and have voting rights in major business decisions, such as electing directors or approving mergers. They receive dividends, which are portions of the company’s profits, but the rate is not fixed and depends on profitability. Equity shareholders benefit from capital appreciation if the value of the company grows over time, but they also bear the highest risk, as they are paid last in case of liquidation. Equity shares are listed on stock exchanges, and their prices fluctuate based on company performance, investor sentiment, and market conditions. They suit investors seeking growth and willing to take risks.