When an investor directly invests in equity, they now own a limited percentage of the company. In other words, the investor owns a piece of the cake. In direct equity investment, the deal is – the investors offer operational capital and, in return, receive a percentage of the profit or losses in the organization. The company employs the capital made available by the retail and institutional investors for capital expenses, corporate expansion, debt payments, funding business operations, hiring employees, etc. Investors who invest in companies through direct equity can also earn dividends quarterly or annually.