App Icon

Download Our App

Get the best experience by downloading our app.

GET
Previous Year Question Paper Click here to download

Equity share and Equity


Equity share and Equity

Equity refers to the value of an asset after all debts and other liabilities have been deducted. It represents the residual interest of the owners in a company's assets after all the creditors and other obligations have been paid off. In a broader sense, equity can refer to the ownership interest of shareholders in any asset or company, including real estate, private equity, or publicly traded stocks.

Equity shares, on the other hand, specifically refer to the ownership shares in a company that are traded on a stock exchange. These shares represent the ownership interest of the shareholders in the company and entitle them to vote on important company decisions and receive a portion of the company's profits, known as dividends. Equity shares are also called common shares or ordinary shares.

In summary, equity is a more general term that refers to ownership interest in any asset, while equity shares specifically refer to the ownership shares of a publicly traded company that are bought and sold on a stock exchange.

Post a Comment

0 Comments