Ownership Stake: Equity shareholders have a stake in the company's assets and profits. Voting Rights: Shareholders can vote on major corporate decisions, such as electing board members.

assets = liabilities + equity Remember, accounting is all about balance — they call it “balancing your books” for a reason. Let’s say your company makes $20. That’s an asset.

Understanding the difference between liquid and illiquid assets is crucial for financial planning. Liquid assets are those that can be easily converted into cash with minimal loss in value.