Equity shares are non-redeemable instruments issued by companies to raise funds from the public. As holders of these shares, investors obtain a stake in the company's ownership and the opportunity to participate in its growth.
Investing in equity shares is a great idea. The reason is that an equity share indicates that you have a certain percentage of equity in the company. Thus, the returns you get are directly linked to the profits of the company. This makes it a great option as the opportunity to earn a good return is high.
Equity shares represent ownership in a company, entitling shareholders to a portion of the company's profits and assets. This form of investment offers a multitude of benefits, including the potential for high returns, dividend income, liquidity, and the ability to diversify a portfolio.
Individual and institutional investors come together on stock exchanges to buy and sell shares in a public venue. Share prices are set by supply and demand as buyers and sellers place orders.