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The ordinary shares (UK) or common stock (US) of companies. The owners of these shares are entitled to the residual profits of companies after all claims of creditors, debenture holders, and preference shareholders have been satisfied. Equities thus have a higher variance of expected yield than other shares; this effect increases with a company’s gearing. See also corporate equity; debt for equity.

Reference: Oxford Press Dictonary of Economics, 5th edt.