Equities are a type of financial asset that represents ownership in a company. When you buy equities, you are essentially buying a small piece of that company. Equities are traded on stock exchanges, and their prices fluctuate based on supply and demand.
There are many reasons to buy equities. First, equities can provide you with a return on your investment in the form of dividends and capital gains. Dividends are payments that companies make to their shareholders, and capital gains are profits that you make when you sell your equities for more than you paid for them. Second, equities can help you to diversify your investment portfolio. By investing in a variety of different equities, you can reduce your risk of losing money if one or two of your investments perform poorly. Third, equities can provide you with a hedge against inflation. Over time, the prices of goods and services tend to increase, which means that the value of your money decreases. Equities can help to offset this effect by providing you with a return that is linked to the performance of the economy.
