We have heard many a times that shares, or equity is one of the best long-term investment options. However, a number of us are unaware of what this equity or shares are. Due to this we shy away from investing in this asset class. By way of a simple example in this video we have tried to explain the concept of equity. Taking the example of a company, we have enumerated the advantages that both the company and the investor get when shares are issued by the company and are bought by the investor. We have also explained the advantages of investing by way of equity mutual funds.