Equity ownership refers to the legal right of an individual or organization to own a portion of a company and share in its profits. It is an important concept in the world of business, as it allows individuals or organizations to invest in a business without needing to actively manage it. Equity ownership can be acquired either through direct investment or indirectly through mutual funds, exchange-traded funds (ETFs) and other financial vehicles. With equity ownership, shareholders gain certain rights, such as voting power and the ability to receive dividends. They also incur certain obligations, such as potential losses if the business does not perform well. Ultimately, owning equity in a business gives shareholders an opportunity to reap the rewards of their association with that business.