Equity interest in a company is represented by Ordinary Shares.
When a company issues ordinary shares, also known as common shares, it is essentially selling ownership in the company to investors. By purchasing ordinary shares, investors become part-owners of the company and are entitled to a share of its profits in the form of dividends. They also have the right to vote on important company decisions, such as the election of the board of directors and any proposed changes to the company's articles of association.
In contrast to debt instruments like bonds and debentures, which represent loans to a company and are typically paid back with interest, ordinary shares represent a stake in the company's ongoing success and future growth potential. The value of a company's ordinary shares can rise or fall based on a variety of factors, including the company's financial performance, industry trends, and overall market conditions.