Equity signifies ownership in a company, obtained by contributing capital crucial for its operations. This capital is generated by issuing shares, each representing a portion of the company's assets and profits. Shares can be acquired through direct purchase or stock exchange trading.
Equity offers returns through stock price appreciation, dividends, and bonus issues. The secondary market, primarily NSE and BSE, facilitates daily trading of company stocks. Investors, both retail and institutional, engage in these markets through brokers and financial intermediaries, assisting with transactions, settlement, and servicing investor needs.