The equity method is an accounting technique used to report investments in equity securities, such as stocks, where the investor has significant influence but not control over the investee. Under the equity method, the investor recognizes its share of the investee's net assets and earnings in its financial statements, typically as a single line item in the income statement. The equity method requires periodic adjustments to reflect changes in the investee's financial position and performance. It is commonly used for long-term investments in joint ventures, associates, or subsidiaries, where the investor holds between 20% and 50% of the investee's voting shares. The equity method provides investors with a more accurate representation of their economic interest and influence in the investee's operations compared to other accounting methods.

An equity derivative is a financial instrument whose value is derived from the price of an underlying equity security, such as a stock or stock index. Equity derivatives include options, futures, forwards, and swaps, which allow investors to speculate on or hedge against movements in equity prices without owning the underlying assets. Equity derivatives offer flexibility, leverage, and risk management benefits, enabling investors to profit from price fluctuations, enhance portfolio returns, or protect against adverse market conditions. They are traded on exchanges or over-the-counter (OTC) markets and play a vital role in financial markets for price discovery, liquidity provision, and risk transfer.

Equity financing is a method of raising capital for a business by selling ownership stakes, such as stocks or equity securities, to investors in exchange for funds. Unlike debt financing, which involves borrowing money that must be repaid with interest, equity financing does not create debt obligations for the company. Instead, investors become shareholders and have an ownership interest in the business, entitling them to a share of profits and voting rights in corporate decisions. Equity financing can take various forms, including initial public offerings (IPOs), private placements, venture capital investments, and crowdfunding campaigns. It offers businesses flexibility in accessing capital without incurring fixed repayment obligations and may be suitable for startups, growth-oriented companies, or those with limited access to traditional financing sources.