What does 'equity' mean in investing?
An example of an AI chatbot conversation about investor terms explained.
What does 'equity' mean in investing?
Equity refers to ownership in a company, represented by shares. It signifies your stake in the company's assets and earnings.
How is equity different from debt?
Equity represents ownership, while debt is a loan that must be repaid. Equity holders benefit from profits, whereas debt holders receive fixed interest.
Can you explain what 'dividends' are?
Dividends are payments made by a corporation to its shareholders, usually from profits. They can be in cash or additional shares.
What does 'market capitalization' mean?
Market capitalization is the total market value of a company's outstanding shares, calculated by multiplying the share price by the total number of shares.
What are 'mutual funds'?
Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.
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