Equity Security
/ˈɛkwɪti səˈkjʊərɪti/
Definitions
- (n.) A type of financial instrument representing ownership interest in a corporation or entity, typically in the form of stocks or shares.
Investors purchased equity securities to gain voting rights and dividends from the company.
Forms
- equity securities
Related terms
See also
Commentary
Equity securities differ from debt securities in conferring ownership rather than creditor status. Legal treatment frequently centers on shareholder rights and protections.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.