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Stocks are equity because they represent ownership in a firm, though ownership ofshares in a public company generally does not come with accompanying liabilities. The following are more specific definitions for the various forms of equity: 1. A stock or any other security representing an ownership interest.Stocks are equity because they represent ownership in a firm, though ownership ofshares in a public company generally does not come with accompanying liabilities. The following are more specific definitions for the various forms of equity: 1. A stock or any other security representing an ownership interest.