Money:
Money is any token or other object that functions as a medium of exchange that is socially and legally accepted in payment for goods and services
and in settlement of debts. Money also serves as a standard of value for measuring the relative worth of different goods and services and
as a store of value. Some authors explicitly require money to be a standard of deferred payment.
Money includes both currency, particularly the many circulating currencies with legal tender status, and various forms of financial deposit accounts, such as demand deposits, savings accounts, and certificates of deposit. In modern economies, currency is the smallest component of the money supply.
Money is not the same as real value, the latter being the basic element in economics. Money is central to the study of economics and forms its most cogent link to finance. The absence of money causes a market economy to be inefficient because it requires a coincidence of wants between traders, and an agreement that these needs are of equal value, before a barter exchange can occur. The use of money is thought to encourage trade and the division of labour.
Equities:
Equity is a share (also referred to as equity shares) of stock represents a share of ownership in a corporation.
Stock typically takes the form of shares of common stock (or voting shares). As a unit of ownership, common stock typically carries voting rights
that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is
legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders. Convertible preferred
stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually
anytime after a predetermined date. Shares of such stock are called "convertible preferred shares" (or "convertible preference shares" in the
United Kingdom).
Although there is a great deal of commonality between the stocks of different companies, each new equity issue can have legal clauses attached
to it that make it dynamically different from the more general cases. Some shares of common stock may be issued without the typical voting
rights being included, for instance, or some shares may have special rights unique to them and issued only to certain parties. Note that
not all equity shares are the same.
