EQUITY in finance

Damian Sternberg

Company

BANK

EQUITY capital

External finance

EQUITY capital is the amount of a company´s capital which is owned by the shareholders. (Other word: Shareholders´ equity)

Damian Sternberg

100.000 €

„The three shareholders have an EQUITY of 80.000 € in the company.“

80.000 € 20.000 €

EQUITY capital could be:

Money Buildings

profit

reserves

other objects

Damian Sternberg

rights

is the right to receive dividends as part of the profit of a company in which you own sharesEQUITY

Company

EQUITY

Damian Sternberg

Damian Sternberg

More vocabulary with regard to EQUITY:

- equity shares: Other word for stock

- Private Equity: asset in a privately held company

- equity investment : Investement in stock

- Equity (economics): theorie about fair tax-systems

Damian Sternberg

Thank you!