Equity
Equity refers to ownership in a company, typically in the form of stocks or shares. When someone owns equity in a company, they hold a stake or ownership in that company, meaning they share in its profits and have voting rights in corporate decisions. In a broader sense, equity can also refer to the residual value of a company’s assets after all liabilities are paid off, which shareholders would receive in the event of liquidation. This represents the portion of the company owned by the shareholders after all debts and obligations are settled.
Related Terms
Capital Gains
A capital gain is the profit earned when an investor or trader sells assets like...
Income Statement
An income statement is a key financial document detailing a company’s profit, loss, revenue, expenses,...
At The Close Or Closing Price
The 'at the close' or 'closing price' refers to the last traded price of a...
Deferred Tax Liability
Deferred tax liabilities stemming from temporary differences—when an liability is recorded on the balance sheet...
Basis Of Allotment
The basis of allotment defines the criteria for distributing shares to investors, typically during IPOs....
Anchoring and Adjustment
Anchoring is a cognitive bias where decisions hinge on pre-existing notions or data, true or...
