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An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits. A person holding such an ownership in the company does not enjoy the highest claim on the company's earnings. Instead, an equity holder's claim is subordinated to creditor's claims, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied also called equities or equity securities or corporate stock.
Historically, equities have outperformed safer investments like bank FDs and bonds and can act as the real driver for growth in your investment portfolio. However it consist of risk of uncertainty and volatility.
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