🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

Back

Anonymous

Anonymous

Hey I am on Medial • 6m

I want to understand basic terms on what is equity and how do you decide? How are the profits shared later? Can someone pls explain with example for easy understanding?

1 Reply
1
Replies (1)

Charchit Vishwakarma

Startup enthusiast w... • 5m

Equity means ownership in a company. If you have equity, it simply means you own a part of the business. The percentage of equity each person gets is usually decided based on what they contribute, like money, skills, ideas, or time. For example, if two people start a business and one invests money while the other works full-time without salary, they might agree to split equity equally, or based on who contributes more. Once the company starts making profits, these profits are shared according to the equity percentages. So if you own 30% equity, you will get 30% of the profits after all expenses like salaries, bills, and taxes are paid. For instance, if you and a friend start a business and you put ₹2 lakh while your friend puts ₹8 lakh, and you agree on a 20%-80% equity split, then if the company makes ₹10 lakh profit, you will get ₹2 lakh and your friend will get ₹8 lakh. In short, equity gives you a right to share in the company’s success based on how much you own.

Reply

More like this

Recommendations from Medial

Image Description
Image Description

Aryan patil

 • 

Monkey Ads • 1y

Can somebody pls explain me difference between universal basic income & universal high income?

2 Replies
3

Vikas Acharya

 • 

Medial • 11m

Starting Summary series of Y COMBINATOR STARTUP SCHOOL startup course for the better understanding of basic terms !!! #medialfam.

Reply
7
Image Description
Image Description

Samrat Kesharwani

19 | Founder & CEO @... • 8m

How to decide how much equity to give in pre seed round or how much valuation to ask for-?

10 Replies
9
Image Description
Image Description

Account Deleted

Hey I am on Medial • 1y

Can anyone explain how this guy built the video editor using Claude AI? I have basic understanding of coding , so I'm curious if someone can break down what he mentioned in the second pic

18 Replies
6
21

Abhay Pathak

Style better • 1y

Can anyone tell me how startup showcase winners will be decided ?? And on what terms and conditions the wining price will be given ??will they take any equity ?

Reply
3
Image Description
Image Description

MD. SAQIB

Hey I am on Medial • 1y

Do you agree with this meme or not. If no then please explain. "Moreover, we aren't comparing business or profits, we are comparing on how easily people can get jobs and how much authentic they are "

9 Replies
12
Image Description
Image Description

Harish Khan

Developer • 4m

How to Use Prompts: Be Specific ➤ Bad: Tell me about AI ➤ Good: Explain how ChatGPT works in simple terms Set a Role ➤ Prompt: Act as a lawyer and explain contract law Give Examples ➤ Prompt: Rewrite this text like this: [example] Define Style/Ton

See More
8 Replies
6
22
1
Image Description

Akash Koli

Experienced Financia... • 1y

Understanding Return Ratios: Measuring Your Business Performance 📊💡 Hello VittArena Network! Return ratios are key to assessing how well your business is performing. Here’s a quick guide: # ROI (Return on Investment): Measures the gain or loss f

See More
1 Reply
8

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