What is equity investment?

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John C Brandy, Financial Consultant (Hourly)

@brandyjc • 02/05/17 This answer was first published on 02/05/17. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Equity is simply another word for ownership. If you have equity in my company, you own a piece of it. The part of your home you own is your home equity, and the rest belongs to the bank.

Equity investments then are stock or stock mutual fund investments for the most part. That's because stock is ownership as opposed to bonds, which are lending.

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