Equity— What does it mean to you? How would you define or explain it? Can you pr
ID: 1107192 • Letter: E
Question
Equity—What does it mean to you? How would you define or explain it? Can you provide some examples of equity or lack thereof? Why is it vital for a good functioning society, what are some economic examples or equity. How does it impact or affect our economy? Please provide examples whenever possible. Equity—
What does it mean to you? How would you define or explain it? Can you provide some examples of equity or lack thereof? Why is it vital for a good functioning society, what are some economic examples or equity. How does it impact or affect our economy? Please provide examples whenever possible.
Explanation / Answer
In share trading, equity refers to a 'stock'. It is commonly called shareholders’ equity which is the amount of capital contributed by the owners or the difference between a company’s total assets and total liabilities. In other ords, equity is ownership. Example: The two most important types of equities are common stock and preferred stock. The certificates of shares bearing the name of the shareholder, number of shares held, the name of the company, etc, represent these equities or shares. When a company decides to sell additional shares to new or existing shareholders, it is called raising equity. One of the most important characteristic of equity is that it entitles the owner or the shareholder to vote on certain fields as it entitles the ownership. Equity has injected more amount of capital into the economy from the past few years, providing millions of companies with a new funding source. a It plays a pivotal role in the development of industries, initiates job growth and facilitates the development of strategic capabilities. It is hence vital for a good functioning of a society.
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