5 Replies to “If Equity is synonym for a Share, then why we are using these two separately?”

  1. Why worry?

    You can use whichever term you like and wherever. There is practically no difference in meaning in general parlance and practice.

    ( Secondly, we have got tradition of calling people by pet names, don’t we? e.g. girls are popularly called sonu or monu but their names are different ). Equity and Share is something on the same lines.

  2. The meaning of “equity” depends very much on the context. In general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner’s equity because he or she can readily sell the item for cash. Stocks (shares) are equity because they represent ownership in a company.

    For further discussion, see


  3. hi,

    the word ‘share’ is more used by common people.

    share – high risk, high returns (posible but not certain)
    mutual fund – medium risk, medium profit
    land investment – low risk, meium profit (needs huge money to invest)

    study the fundamentals of investment from http://vbulls.com/ .

  4. yes equity is synonym for a share, but still we use these two separately cause, share gives a meaning,that you have a share of the company whose equity you buy.
    share and equity is the same, mutual fund, is a pool of money, which is managed by professional fund managers for people who dont have enough knowledge or time for dealing in stock market themselves.

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