Written by Upstox Desk
4 min read | Updated on September 26, 2025, 14:23 IST
What is equity?
What is equity investment?
Advantages of equity investment
How can you invest efficiently and safely in equity?
Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.
When we talk about equity, the term can hold different meanings, depending on the context and type of assets. Equity in general terms is the degree to which you own an asset, after all the debts associated with that particular asset are paid off. So when you buy shares of a company, you are doing an equity investment in that company. In this section, we will go into the details of equity, equity investment, advantages of equity investment and, how to invest in equities.
Key Points
A lot of people want to learn about equity investment and execute it, especially in India. You can also invest in equity with a little bit of knowledge which you will get here.
Equity is nothing but ownership; ownership of anything, actually. Let's suppose you own 10 shares of a company XYZ, which has 100 shares in total. You will then be a 10% owner of the company. So, if this company makes a profit, your capital investment will rise and vice-versa. There is a simple mathematical formula to calculate equity:
EQUITY = ASSETS - LIABILITIES
When you buy and hold a share in a company, the act is known as an equity investment. It’s called an equity investment since shares are ‘equal’ ownership avenues into a company - each share being equal to the other.
When you buy common stocks of a company from the share market, you are partially an owner of the company. When the company earns a profit, you get income from dividends and capital gains. When the company makes a loss, you will also incur a loss. Equity holders receive voting rights, meaning you will have the right to participate in the decision making process of the company.
Wrapping Up:
About Author
Upstox Desk
Upstox Desk
Team of expert writers dedicated to providing insightful and comprehensive coverage on stock markets, economic trends, commodities, business developments, and personal finance. With a passion for delivering valuable information, the team strives to keep readers informed about the latest trends and developments in the financial world.
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