Answer / varun vohra

There are two ways for companies to raise money for
business investment - they can borrow it and/or they can
issue shares - otherwise known as stocks. In corporate-
finance-speak, stocks are called equity capital and
borrowed money is debt capital. Equity (stocks/shares)
differs fundamentally from debt in two ways.

It represents an ownership interest in a company - you're
buying a share of the company, not lending the company
money.
A bondholder (basically, a lender) is entitled to a regular
interest payment and can call for a winding up of the
company if interest isn't paid. An equity holder is not
entitled to any regular payment - (although most stocks
provide for the payment of a cash dividend this is at the
discretion of the company's management).
So, buy a stock and you're buying part-ownership of a
company. And as an owner, you take a share in the company's
future profits.

Answer / vandana gupta

The term's meaning depends very much on the context. In
finance, in general, you can think of equity as ownership
in any asset after all debts associated with that asset are
paid off. For example, a car or house with no outstanding
debt is considered the owner's equity because he or she can
readily sell the item for cash. Stocks are equity because
they represent ownership in a company.

Answer / guest

equity means owners share in the business.

Answer / shivakumar

equity is owners total share in the business or company

What is the difference between Hire Purchase & Lease Finance

1 Answers  

---

What is CAR?

0 Answers   Nabard,

---

What's CRR?

0 Answers   State Bank Of India SBI,

---

hai i completed my or11i, recently practicing on my pc i was unable to create bank in payables option in setup/payment/bank navigat......so plz help me out.

1 Answers  

---

I am going to complete my MBA and I am selected in a clerk exam, I know i can do much better like after how many years I will get a growth If I join Sbi as a clerk. Like after How much time I will become officer

0 Answers   Finance, State Bank Of India SBI,

---

What Is Commercial Bank?

0 Answers  

---

Define IPC.

0 Answers  

---

What is Balance of payments adjustment mechanism?

0 Answers  

---

What is the post- dated cheque?

0 Answers   State Bank Of India SBI,

---

How will you handle stressful situation while dealing with the public?

0 Answers   RBI,

---

what is lognormal distribution in the context to insurance?

0 Answers  

---

Explain Openpages Financial Controls Management?

0 Answers   IBM,

---