Equity refers to the portion of a company or asset that is owned by one or more. In a public company, this is represented by ownership of shares issued by the company. The share value is normally calculated as the net amount of a company’s total assets and liabilities as listed on its balance sheet. It represents the amount of money that is invested in a firm by shareholders that is not returned (for example as dividends) in the normal course of business.
Investment for equity refers to buying shares in a company in the hope that the value of the company will grow in the future as it puts the investment money to use. Investors only realize a return on equity investments when they sell their shareholding to other investors or when the firm is wound up and the proceeds are distributed less any liabilities.
More Stories
Exploring Options for Funding Your Research Project
Fast Cash: How to Get Money Quickly
Easy Ways to Make Money in No Time