can you please explain this to me $($ Real assets versus financial assets

Common stock, or equity, in a firm represents an ownership share in the

corporation.

Equity holders are not promised any particular payment.

They receive any dividends the firm may pay and have prorated ownership in the

real assets of

the firm.

If the firm is successful, the value of equity will increase; if not, it will decrease.

The performance of equity investments, therefore, is tied directly to the success

of the firm and its real assets.

For this reason, equity investments tend to be riskier than investments in debt

securities$.)$