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 ownership in a company or other entity. It typically gives its owner voting rights, meaning they can elect members of the board of directors. The most common type of equity is common stock, which is issued by companies to raise capital and give shareholders an ownership stake in the business. Other forms of equity include preferred stocks, convertible securities, and debt securities. Common stocks are usually bought and sold on exchanges such as the NYSE, while preferred stocks are often traded over-the-counter (OTC). Convertible securities allow investors to exchange them for common stock at a predetermined rate. Debt securities represent loans made to companies or governments, and provide their holders with regular interest payments.