What does equity mean?

Capital stock refers to the proportion of shares held by investors who buy shares of a company at a certain amount. In short, it is the proportion of investors investing in the company's shares. Capital stock determines investors' power and dividend ratio in company decision-making. Therefore, for investors, it is very important to master the capital share and understand the company's operation and financial situation for making wise investment decisions.

Equity is not only related to the company's dividend policy, but also closely related to the trend of the stock market. If the market fluctuates greatly in the short term, capital stocks may also be greatly affected. Therefore, in the stock market, investors need to always pay attention to market changes, invest rationally and manage risks well.

Equity plays an important role in raising funds from stocks. Companies need to attract investors' funds by issuing stocks to support the development of enterprises. Therefore, in stock investment, understanding the concept and calculation method of equity is of great value to investors and entrepreneurs.