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Financial Video
Equity

Equity is nothing but ownership; ownership in Business. Equity is the capital amount which is raised or contributed by the members or shareholders of the company.

The net worth of a company represents the ownership interest of the shareholders (common and prefered) of a company.Equity is the capital amount which is raised or contributed by the members or shareholders of the company. For the reason, shares are often known as Equities. For example, if you hold 10 shares of XYZ Company out of total 1000 shares floated by the company – you are 1% owner in XYZ's business. The net worth of a company represents the ownership interest of the shareholders (common and prefered) of a company.

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