Equity
Ownership interest in a firm, typically held as shares.
Detailed Description
Equity
What is the definition of equity?
Equity is the ownership value in an asset after all liabilities have been deducted, representing the portion of the asset that an individual or entity truly owns.
What are the main types of equity?
The main types of equity include common equity, preferred equity, private equity, public equity, and real estate equity.
How is equity calculated in real estate?
Equity in real estate is calculated by subtracting the total outstanding mortgage balance from the current market value of the property.
What is equity financing?
Equity financing involves raising capital by selling shares of a company to investors, allowing businesses to obtain funds without incurring debt.
What are the tax implications of equity investments?
Equity investments can be subject to capital gains tax on profits and taxation on dividends received, making tax treatment an important consideration for investors.