Back

Gangesh Rameshkumar

Figure it out • 23d

Today's term of the day: Equity Equity, in simple terms, is the money that is returned to all the shareholders of a company, if all the company's assets are liquidated and liablities are paid off. It is also a measure of the financial health of a corporation. From the definition, it's kinda obvious how to calculate equity: It's literally just assets - liabilities. If assets exceed liablities, the company is said to be solvent and is also said to have positive equity. If liabilities exceed assets, the company is said to be insolvent and is also said to have negative equity. All in all, equity is a fancy term that tells you how much of a company belongs to the shareholders

1 Reply
3
Replies (1)

More like this

Recommendations from Medial

Tushar Aher Patil

Trying to do better • 8m

Day 11 About Basic Finance and Accounting Concepts Here's Some New Concepts Equity, in finance, represents the ownership value held by shareholders in a company. It is essentially the difference between a company's total assets and its total liabili

See More
Reply
5
Image Description
Image Description

Anirudh Gupta

CA Aspirant|Content ... • 21d

Daily dose of financial ratios by Anirudh Gupta Debt/equity ratio =Total debt/Shareholders equity Purpose: It helps users of financial statements understand how much debt the company is using for every ₹1 of equity invested by shareholders. Cred

See More
13 Replies
2
13
Image Description
Image Description

Tarun Suthar

 • 

The Institute of Chartered Accountants of India • 1y

Have you read the book "Rich Dad, Poor Dad" written by "Robert Kiyosaki" . he is a genius. He admitted to having more than $1.2 billion in debt 🤯. you might have watched his yt Shorts claiming that. He views this debt as a strategic move and a par

See More
8 Replies
1
19

vishakha Jangir

 • 

Set2Score • 10m

𝗖𝗼𝗺𝗽𝗮𝗻𝘆 𝗩𝗮𝗹𝘂𝗮𝘁𝗶𝗼𝗻 : A process of determining the current worth of a company. This can be done using various methods like comparing with similar companies, analyzing future revenue potential, or looking at assets and liabilities. Le

See More
Reply
2
Image Description
Image Description

Sanskar

Keen Learner and Exp... • 3m

Complicated Business Terms Simplified PART 2 1️⃣ Equity: 📌 The owner’s share in a company after subtracting liabilities from assets. 2️⃣ Cash Flow: 📌 The actual movement of money in and out of a business, crucial for daily operations. 3️⃣ Reven

See More
5 Replies
10
20
Image Description

Abhijit Jha

Full Stack Devloper ... • 1y

What is FPO? FPO abbreviated as Follow-on Public Offer is a process in which an existing company listed on the stock exchange issue new shares to the existing shareholders or to the new investors. It is different from an IPO where the company issue

See More
2 Replies
6

Gangesh Rameshkumar

Figure it out • 24d

Today's term of the day: Dividends When a company makes a profit, it can choose to share a portion of the profit with its shareholders as a reward for their investment. This "reward" given by the company to it's shareholders is called a dividend Di

See More
Reply
3
Image Description

NRI FORUM

Hey I am on Medial • 1m

There are two co-founders in the company having 20:70 share holdings. 10% equity is with investor. They wish to sell 11% equity. How to split 11% equity from their equities?

3 Replies
9
Image Description
Image Description

TREND talks

History always repea... • 6m

😳 Zuckerberg's company plans to lay a $10 billion underwater cable to connect the entire world. 🌍🔗 Its length will exceed 40,000 km. 🌊⚡

2 Replies
17

Download the medial app to read full posts, comements and news.