human
I'd like to know more about the different types of equities and how they work.
assistant
Equity is a type of security that represents an ownership interest in a company or other entity. It is typically issued by a company, and gives its holder voting rights and the right to receive dividends. There are two main categories of equity securities: common stocks (also known as shares) and preferred stocks. Common stocks represent a share in the company’s profits and losses, while preferred stocks have fixed dividend payments and may also offer voting rights. Other forms of equity include bonds, debentures, trust certificates, warrants, and units.