Owning capital in a home or other real estate is most often a very secure investment that a person can count on to increase in value over time.

Real estate, especially a house occupied by the owner, is by far the most widely owned form of capital investment. When a real estate owner sells, the price he receives may be more or less than his cost. Where one man is sole owner of an equity, all the profits or the losses are his; or if he owns only part of the capital, then he and the other owners share in the profits or the losses.


All corporations issue common stock, a purely “capital” type of ownership. Some have one or more additional classes, usually called “preferred stock,” these are equities with some fixed-price features. Intelligent owning of common stock requires more study than lending does.

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