equity investment

Buying company shares

An equity investment is the purchase of ownership shares in a company, as opposed to lending money to it.

The investor gains a stake in the business and participates in its profits or losses.

The venture capital firm made equity investments in several tech startups.

Equity investments carry more risk than bonds but offer potentially higher returns.

Opposites
capital structure type

equity investmentloan

Borrowed money repaid later

debt financing · lending · debenture · corporate bond · secured loan

capital deployment strategy

equity investmentdivestment

Disposal of assets

stock sale · liquidation · cashing out

risk-return profile

equity investmentgovernment bonds

State-issued debt securities

savings account · certificates of deposit · money market funds · capital preservation

Family

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Top 500,000
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