In the context of investing, an equity is a stock or any other security representing an ownership interest.
Canadian investors generally classify equities by type and/or geographically, depending on the context of their use, typically for asset allocation reasons. The following classifications are not mutually exclusive.
- Canadian equities
- US equities
- International equities
- Emerging markets
- Hedge funds
- Private equity
- Flow-through shares
- Warrants and Rights offerings
- Limited Partnerships
How to invest
There are a number of ways to invest in equities. Products such as exchange-traded funds and mutual funds can be used to invest in broad based coverage of these classifications. Another way to invest is to build a portfolio holding individual stocks purchased on a stock exchange, such as the Toronto Stock Exchange for Canadian equities.
Security regulation in Canada is under provincial and territorial jurisdiction.
- Investopedia, Equity definition, viewed June 18, 2012