Equity represents the number of shares that stockholders own or the amount of money that the company would return to its shareholders if it chose to pay off its debts and sell all its assets.
Total assets - Total Liabilities
The four primary components of business equity are: 1. outstanding shares 2. additional paid-in capital 3. retained earnings 4. treasury stock
Common types of equity include: 1. brand equity 2. home equity 3. owner's equity 4. private equity 5. shareholders' or stockholders' equity
Equity financing involves trading a percentage of business ownership with an investor for funding, without incurring any loan or financial burden.
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