Shares and equity are two different concepts that are often used in different contexts and have different meanings.
Shares:
Definitions:Shares are a portion of the company's capital and represent an investor's share of ownership in the company.
Form:Shares usually come in the form of **, each of which represents a small portion of the ownership of the company.
Rights:Investors who hold shares are known as shareholders, and they have the right to share in the company's profits and participate in voting in the company's decisions.
Transactions:Shares can be bought and sold on the ** market, and the fluctuation of the stock price depends on market supply and demand and the company's performance.
Equity:
Definitions:Equity is the difference between assets and liabilities and represents a company's net assets. In financial accounting, equity is the residual equity of a company attributable to shareholders.
Form:Equity does not exist in the form of **, but as an item in the company's financial statements.
Benefits:Equity represents the balance of the company's assets minus liabilities that are owned by shareholders. Shareholders share in this interest by holding shares.
Financial Analysis:Equity is used in financial analysis to measure a company's net worth and is an indicator of a company's long-term health and value.
In a common context, it is often easier for people to understand and talk about "owning shares" because it is directly related to the ownership of the company. However, in the field of finance and accounting, the more commonly used term is "equity" to denote a company's net worth.
Overall, shares emphasize holding a portion of the company's ownership, while equity emphasizes the company's net worth. In the context of investing and markets, people tend to use the term "shares".