Shares/Stock What is Equity All About?

Faith B

Active member
Equity is a term used to describe the value of ownership. It can refer to the entire organization or to a specific item. A company will list its total equity on its balance sheet and adown the value of retained earnings and its inventory. Once this amount is calculated, the company can subtract its liabilities and calculate its equity. If the business is doing well, it can increase its equity by using a personal guarantee. But it can also lose its value if its owner defaults on his loan.

Equality is a word that has many definitions or different meaning used in various event Regardless of its name. equity recognizes individual differences and needs and promotes fairness and justice. However, it must be understood that equity is not the same as equality.

While equality is a good idea, it can lead to a widening of inequities in communities. This is because not all groups need the same opportunities and resources. Inequity recognizes individual differences and needs and provides a balance between the two. This is different from equality, which gives the same resources to everyone regardless of their background or financial status. It also makes room for intangible assets such as stock.
 
The word equity is defined as ownership or the right to own something. When it comes to real estate, an investor buys a property, pays off the loan and then reaps the benefits of being in control over their investment.

Broadly speaking, there are two types of equity:

(i) The first is called the House Value and refers to the difference between the current value of a property and the amount that is owed on that property. This value is also known as Equity Outstanding on a mortgage.

(ii) The second type refers to how much money you would have if you made a sale


If you’re an entrepreneur and you’ve ever been through the process of getting funding for your startup, you probably heard about the equity part. That’s because Equity is one of the three most important factor in getting funding.

Equity is a form of investment in which an investor does not expect to get back the entire amount he has invested. Instead, he may hope to receive a return from his investment either through the growth of the value of the investment or from dividends.
 
It is in most cases a long-term investment because you will get cumulative returns every month and you have to find yourself a winner by the last of the year because sometimes you find yourself a loser.
 
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