Equity is a term that is often thrown around in financial discussions, but what does it really mean? In simple terms, equity represents ownership. It is an asset class that gives individuals a share or stake in a company or property. Understanding equity is crucial for
the working class in their pursuit of financial freedom. In this subchapter, we will delve into the intricacies of equity and how it can unlock opportunities for the working class to build wealth. Equity can take various forms. For instance, if you own shares in a publicly traded
company, you have equity in that company. The more shares you own, the greater your ownership stake and potential for financial gain. Similarly, if you have a mortgage on a property, the portion of the property's value that you own outright is your equity. This
concept of ownership is at the core of equity and holds immense potential for the working class to leverage and grow their wealth. Equity is a powerful tool for financial freedom because it allows individuals to participate in the success and growth of a business or property. As the value of the underlying asset increases, so does the value of your equity. This growth can come in the form of capital appreciation, where the asset's value rises over time, or through dividends or rental income generated by the asset.