A unit of ownership of a publicly held company (public corporation). It is a security issued by an entity representing ownership interest in its net assets (i.e., residual interest in its assets). Equity holders usually have voting rights to elect management, participate in corporate decision-making (at the level of general assembly), and receive profit distributions (dividends).
An entity’s capital (equity capital/ share capital) is divided into shares, each corresponding to a small chunk of equity ownership, virtually with perpetual nature. In other words, equity shares are perpetual instruments that do exist, and continue to do so, as long as the issuer is a going concern.
Equity share is also known as voting share and ordinary share.
