Equity investment is the act of investing in and purchasing the equity of a company in order to participate in or control its business activities. It can occur in the publicly traded market, when a company is initiated or established, and when shares are transferred privately.

The motives of equity investment mainly include:

(1) Income, including dividends and capital gains.

(2) gain control over assets and gain benefits through adjustment, scheduling and appreciation of assets.

③ Participate in business decision-making, spread risks and find business opportunities.

(4) Adjust asset structure and increase current assets. This motivation often exists when investing in tradable shares.

⑤ Speculation in order to obtain the difference between the purchase price and the purchase price often exists when investing in tradable shares.

Extended data:

Equity investment is divided into the following four types:

(1) Control right refers to the right to decide the financial and business policies of an enterprise, and thus obtain benefits from the business activities of the enterprise.

(2)*** has control, refers to the control of an economic activity according to the contract.

(3) Significant influence refers to having the right to participate in the decision-making of enterprise financial and operating policies, but not to decide these policies.

(4) No control, no control and no significant influence.