Business, Legal & Accounting Glossary
An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation’s assets and profits. A person holding such an ownership in the company does not enjoy the highest claim on the company’s earnings. Instead, an equity holder’s claim is subordinated to creditor’s claims, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied. also called equities or equity securities or corporate stock.
Equities is another name for shares or stocks. To have equity in an asset is to own a piece of it; equities is used more broadly to mean ownership interests in companies. Equities are distinguished from bonds, which represent loans to the issuer. Holders of equities may or may not receive dividends of varying size, depending on the company’s earnings and dividend policy. Bondholders receive regular interest payments.
Both the prices of equities and bonds may go up or down. But in general, the prices of equities are more volatile, and holders of equities are more likely to look to capital appreciation (an increase in stock price) to provide a suitable return on their investment. Because of the greater likelihood of capital appreciation but the more uncertain outlook for a consistent stream of cash payments, equities are usually the more aggressive investment. However, equities are as diverse as the companies they represent. Some equities offer consistent dividend payments but only slow, if steady capital appreciation. Other equities offer no dividends, but the real, if uncertain, prospect of large price increases.
When my company went bankrupt, my boss was frustrated because his position as an owner of the company’s equities meant he would be further behind other creditors in line to get paid.
We had a lot of equities and I explained to my son what that meant as far as business went for us.
You need to try and get the best deal you can on any equities trading that you do so that you can get the most profit.
equity collar
equity injection
average shareholders' equity
equity swap
equity stripping
Bursa Malaysia
TMX group
participation mortgage
debt-equity swap
equity turnover
Boston Equities Exchange (BEX)
100% equities strategy
NYSE Amex Equities
An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation’s assets and profits. A person holding such an ownership in the company does not enjoy the highest claim on the company’s earnings. Instead, an equity holder’s claim is subordinated to creditor’s claims, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied. also called equities or equity securities or corporate stock.
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This glossary post was last updated: 21st November, 2021 | 0 Views.