The glossary

Equity

Equity (also called a share or stock) is a financial security representing ownership in a company. Holding equity makes you a shareholder, entitled to a proportional share of the company’s profits (via dividends) and its growth (via the rising value of the share itself). Equities historically deliver higher long-term returns than bonds or cash, but with higher short-term volatility. They form the growth engine of most long-term investment portfolios. Diversified equity exposure, often via ETFs and global mandates like Alpian’s investment portfolios, lets investors capture market growth while spreading risk across companies, sectors, and regions.

Last verified: May 2026