Equipment is a type of item that is the main way a character's stats will be affected. There are many different types of equipment including, head, neck, chest, hands, finger, waist, legs, feet, trinket, weapon, tool, and rune. Like other types of items, equipment can have different qualities.
Head, Neck, Chest, Hands, Finger, Waist, Legs, Feet, and Trinket all only change the stats of your character, while Weapons, Tools, and Runes give you abilities. Weapons allow you to attack, Tools currently only allow you to fish, and Runes give you abilities used in combat that require Mana. Except for runes, players may only equip one of each type of equipment at any given time. Two runes can be equipped at a time.
Equipment is dropped by monsters after killing them with the following drop rates
A list of item slots (category) is here.