What does Equity Mean ? 


Equity shares are usually referred to as shareholders' equity, which represents the amount that will be returned to the shareholders of a company if all assets are sold and all the loans of the company are paid.

Equity is found on a company's balance sheet and is one of the most common financial criteria employed by analysts to assess the financial health of a company.

Shareholders' equity can also measure the book value of a company.

Generally, equity is the medium of equity in the market, and equity is also called equity.

In financial markets, a stock is a unit used as a mutual fund, private partnership and a real estate investment trust.

 The owner of the shares in the company is a shareholder (or stockholder) of the corporation.

A share is an integral entity of capital, which expresses ownership relation between the company and the shareholder.

The price value of a stock is its face value, and the face value of the issued shares, together, expresses the capital of a company, which does not reflect the market value of those shares.

The simple meaning is that the stock capital on the Balance Sheet is not fully accurate and the market value is different.

In accounting, there is a difference between the value of the equity (or the owner's equity) property and the liabilities of something owned.

For example, if a person owns a car of 15,00,000 rupees (property), but against the car there are 10,00,000 dues (liability) on the loan, then the total equity of the car will be only Rs. 5,00,000.

This means that the equity owner is selling the property after paying off all the loans. If liabilities are higher than the value of the property then the equity can be negative.

Shareholders' equity (or stockholders' equity, shareholders' funds, or similar terms) divide the equity of a company between the shareholders of the general or preferred stock.

 Negative shareholders 'equity is often referred to as shareholders' deficits.

Because equity shares are a small part of any business, it is also associated with business linked risk equity.

The ups and downs of the stock market seem to be the same risk, for this reason, before understanding the equity shares, you must understand the risks associated with it.

thanks for the time .

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