Equity refers to the shareholder's ownership of a company, and stock is a financial instrument that represents the company's ownership and is a detailed form of equity. When an investor buys a company's stock, he actually buys the company's equity by purchasing stock, and the stock is generally sold at a unit price, and each stock represents a part of the company's total share capital.
The detailed difference between equity and stock is as follows:
1. The nature is different: Equity refers to all the equity ratios that investors have in a company; and stock is a kind of securities issued by the company to the public and specific collectives in order to raise funds.
2. Different meanings: holding equity means that investors have ownership and control over the company at the economic and decision-making level, and it also means that investors can also enjoy the company's profit distribution, decision-making voting rights and share the company's surplus The right to value; although the stock also represents a part of the company's ownership, although investors need to buy shares to obtain equity and participate in the company's decision-making, the stock is only a financial tool and does not have the meaning of rights in itself.
3. Different methods of acquisition: equity can only be obtained by purchasing stocks or owning company shares, and cannot participate in transactions; stocks generally have standardized face value, quantity and trading units, and can be traded in the stock market.
In short, equity is a form of long-term investment, and its value fluctuates with the company's operating conditions and market changes. Equity can be acquired by, among other things, buying shares in a company or participating in an initial public offering, while shares can be traded and traded in the securities market, with prices influenced by factors such as supply and demand, company performance, and market sentiment. Stock trading offers the flexibility that investors can buy or sell stocks at any point in time.
Simply put, equity refers to all the rights and interests of shareholders in a company, and stocks are financial instruments that specifically represent these equity interests. Stock is a form of equity, and it is one of the ways for investors to acquire and trade equity.