I just noticed that many people are still confused about equity securities. Actually, it's not as complicated as you think; it’s investing in ownership of a company, whether it’s common stock, preferred stock, or stock options.

When you own shares, you own a part of the company and can receive dividends from its profits. The company raises funds by issuing these shares to investors for business operations.

Let's look at different types of equity securities. Common stock gives you the right to receive dividends and voting rights at shareholder meetings. Preferred stock will pay dividends at a predetermined rate but does not have voting rights. However, if the company goes bankrupt, preferred shareholders are paid back before common shareholders.

Let’s take real examples. Apple is one of the most popular equity securities in the world. It’s a tech giant founded in 1976 in Cupertino, California, designing and manufacturing iPhones, Macs, and other devices. It has a very high market value, pays regular dividends, and its growth is driven by innovation.

Another example is Tesla, a growth stock founded in 2003 in Austin, Texas, producing electric vehicles and energy systems. The company has grown rapidly, but its stock price is very volatile. It doesn’t focus on paying dividends but on growth, suitable for investors who accept high risk.

Then there’s Dell Technologies, a large tech stock founded in 1984 by Michael Dell. It provides comprehensive technology services, has steady revenue, and benefits from trends like Cloud, AI, and Data Centers. It’s suitable for those seeking both growth and dividends.

The difference between equity securities and debt securities is very important. Equity securities involve investing in ownership; returns depend on the company’s profits and carry higher risk. Debt securities are loans; investors receive interest as specified, with lower risk and more stable value.

If you want to start investing, there are several ways. Buying shares directly through a brokerage account is suitable for those who want to select stocks themselves but involves high risk. Alternatively, investing through equity mutual funds, where fund managers handle the investments, is suitable for diversification or tax-advantaged funds like RMF and SSF, ideal for long-term planning and tax savings.

The advantage of investing in equity securities is that professional fund managers help manage the portfolio, allowing investment in various types, diversifying risk, and not needing to monitor the market closely.

However, there are also disadvantages, such as price fluctuation risk, business risk, dividend payment ability, debt risk, and legal issues of the company. Additionally, economic, political, or unforeseen events can impact the market.

Finally, when investing in equity securities, you must study and ensure that the business you choose is stable, has growth potential, and is trustworthy. No matter how much you invest, the goal is for your business to grow well.