equity security

Definition 1

Stock (shares) that represents ownership of a firm. Equity securities usually provide steady income as dividends but may fluctuate significantly in their market value with the ups and downs in the economic cycle and the fortunes of the issuing firm.

Definition 2

Right to subscribe for, or convert another security (such as a bond) into, the common stock (ordinary shares) of a firm.


equity security is...

... in the Investing subject.

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