Equity investment

Equity investment is like buying a share of a cake. When you and your friends make a cake together, everyone has a part of it. But what if someone wants more of the cake? They can buy a bigger slice with real money. That's like equity investment.

When you invest in a company, you give them money in exchange for a piece of the company. Like a slice of cake, your piece is called a share. If the company does well, then the value of your share can go up, just like the value of a slice of cake can go up when it is a delicious and popular cake.

Just like how you made the cake with your friends, the company uses the money you give them to help make more money. They might spend it on new machines, hire more people, or try to make new products. If everything works out, they will make more money in return.

So, by investing in the company, you are hoping to make more money too. But just like with a cake, there's no guarantee that you'll get exactly what you want. If the company doesn't do well, then the value of your share can go down, just like how a cake can get soggy and unappetizing.

Overall, equity investment is like buying a slice of cake and hoping that more people will want to eat that cake in the future. It can be risky but if done right, can be very rewarding.