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 liabilities. In other words, equity is what remains for the owners of the company after all debts are paid. Here’s a breakdown of key aspects of equity: 1. Common Equity: Definition: The ownership interest held by common shareholders in a corporation. Common equity represents the basic ownership stake and entitles shareholders to vote on corporate decisions and receive dividends. Key Features: Common shareholders typically have voting rights. Dividends are not guaranteed and depend on company performance. Common shareholders are last to be paid if a company is liquidated, receiving remaining assets after all debts and preferred shareholders are paid.
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