Equity instruments represent ownership interests whereby financial return on the investment is based primarily on the performance of the venture that issued the securities.

Question

Quizplus · Accepted Answer

Equity instruments, such as stocks, represent ownership interests in a company or venture. The financial return on these investments primarily depends on the performance of the issuing entity, as investors may receive dividends and can benefit from capital gains if the company's value increases.

Equity Instruments Represent Ownership Interests Whereby Financial Return on the Investment