How do equities work?

Equities are the same as stocks, which are shares in a company. That means if you buy stocks, you're buying equities. ... That means you're a partial owner of shares in your company. Because equities don't pay a fixed interest rate, they don't offer guaranteed income.

Are equities the same as stocks?

The main difference is that while equities represent a stake in a company, tradable or not, stocks are generally tradable equity shares of a company that can be issued to the general public through stock exchanges.