What is equity | Candider
What is equity
28th Feb 2020 11:59 pm
Business expert
The following result is obtained by our Internet Research Algorithm- Equity as a word means having equal rights or equality. In terms of shareholder's equity, it is a part of a company's capital or also terms as owners capital. As capital is divided into several equal parts in the form of equity, hence value ownership is calculated to understand how much equity he or she owns. This was been done to conceal the actual value of the company as by a single unit. You have to get to know how much equity shares are there in the market. Share Market is a market where secondary sales of shares of public companies are done. These shares (also known as equity) are the part of companies capital and dividend is given on these shares as a return. If a company is very profitable then there will be a higher dividend, and if a company is in loss then this may lead to even decrease in the face (actual) value of a share. In the secondary market, these shares are sold people pay higher value if they found a company will be profitable and may also pay very less value if they found the company will be in a huge loss in future. That's how people earn or loose in the share market. In the share market, profit and loss are very volatile in huge amount.
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