Equity Security

Business, Legal & Accounting Glossary

Definition: Equity Security


Equity Security


Full Definition of Equity Security


An instrument that signifies an ownership position (called equity) in a corporation, and represents a claim on its proportional share in the corporation’s assets and profits. Ownership in the company is determined by the number of shares a person owns divided by the total number of shares outstanding. For example, if a company has 1000 shares of stock outstanding and a person owns 50 of them, then he/she owns 5% of the company. Most stock also provides voting rights, which give shareholders a proportional vote in certain corporate decisions.

Only a certain type of company called a corporation has stock; other types of companies such as sole proprietorships and limited partnerships do not issue stock. also called equity or stock or corporate stock.


Examples of Equity Security in a sentence


You should try to make sure that you do a lot of research when deciding which equity security to use.

We had plenty of equity security and it made us feel very good about ourselves and made us very happy.

Pax knew that the equity security that had been approved was far and away a great investment and he was confident that his ownership would cause great returns.


Related Phrases


par
carrot equity
private equity firm
private equity
maintenance of accounts
open depending on the floor
100% equities strategy
Clearing House Electronic Subregister System (CHESS)
par value
capital market


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April 20, 2024 https://payrollheaven.com/define/equity-security/.
Chicago Manual of Style (CMS):
Equity Security. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/equity-security/ (accessed: April 20, 2024).
American Psychological Association (APA):
Equity Security. PayrollHeaven.com. Retrieved April 20, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/equity-security/

Definition Sources


Definitions for Equity Security are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th October, 2021 | 0 Views.