What is cash equity?

Cash equity refers to the ownership interest in a company that is purchased with cash. It is also known as ownership or stock equity. It allows investors to participate in the ownership of a company and benefit from its growth and profits. Investors who purchase cash equity receive shares in the company in return, which entitles them to vote on certain corporate decisions and receive dividends if the company is profitable. Cash equity investments can be made through individual stocks, mutual funds or exchange-traded funds (ETFs). Cash equity is generally considered one of the riskier forms of investment, as the stock market can be volatile and a company's financial performance can fluctuate. However, cash equity investors can potentially receive a greater return on investment than those who invest in other forms of investment, such as bonds or real estate.