Equity Security

Equity Security - equity security is an instrument that signifies an ownership in a company how much ownership (equity security) you have in a company is determined by how many shares of stock you own divided by the total stocks outstanding. And example of ownership would be the following if a stock had 100 shares outstanding, and you own 3 shares, you would own 3 percent of the total corporation. Most of the time being a shareholder would give you voting rights on issues within the corporation. Sole proprietors and Limited partnerships do not sell stock, only corporations are eligible.