The concept of equities refers to an investment based on assets in which there is no guarantee of the return of the capital that has been previously invested.
According to the meaning of equities, the possibility of receiving an income is nil. However, and as a point in its favor, one of the characteristics of equities is that despite the existing risk, the gains or benefits extracted over time are much greater in the long term.
Contrary to what happens with fixed rent, in the case of equities the shareholders they are also owners and exercise some kind of responsibility over it. For this reason, equities and fixed income differ mainly in the form of investment and the uncertainty associated with their risks. In this way,financial assets they keep a fundamental role since they determine the level of risk and the solvency of each investment.