human
I'd like to know more about the different types of equities and how they work.
assistant
Equities are a type of security that represent ownership in a company or other entity. They can be traded on exchanges such as the New York Stock Exchange (NYSE) or NASDAQ, which are open to the public. There are two main categories of equity securities: common stocks and preferred stocks. Common stocks represent partial ownership in a company and entitle their owners to dividends if declared by the board of directors. Preferred stocks have higher priority than common stocks when it comes to dividend payments and often pay out before common stockholders. Other types of equity securities include convertible bonds, warrants, rights, and participation certificates.