Definition of
equity capital
Stockholding & Investments
stock owned by stockholders the part of the nominal value of the stock owned by the stockholders of a company.
EQUITY CAPITAL - money invested in a business by owners, stockholders or others who share in profits; d...
EQUITY CARVE OUT - Usually occurs when a company decides to IPO one of their subsidiaries or divisions....
EQUITY CAPITAL. Equity capital for small businesses is also available from a wide variety of sources.
Equity capital
The liable capital of a " joint-stock company that is raised by shareholders subscribing for shares in the event of an " issue or choosing not to distribute the company's profit in the form of a " dividend.
Equity capital - Funds provided by the owners of a firm, the return on which depends on the firm's profits.
Equity financing - Method of a firm raising funds by issuing either/or common and preferred stock ...
Equity capital represents permanent capital available. It includes shareholders equity, minority interest and reserves.
Euronext ...
Equity Capital Market - ECM
A market that exists between companies and financial institutions that is used to raise equity capital for the companies.
Our Equity Capital Markets group understands what investors value most: innovative solutions, exceptional service and top performance.
The equity capital of most listed companies is dominated by ordinary shares, sometimes supplemented by prefs or convertibles.
Market Equity Capitalization (Value) $ millions:
$309.7
Percentage of assets supported by common equity: (remainder is debt or other liabilities) ...
Share or equity capital is money permanently supplied in exchange for a stake in the ownership of the business.
See Also: Online share dealing service Stockmarket Centre ...
ratio of equity capital to total assets
Fair value
the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction. In this sense, fair value can be understood as market or current value ...
The amount of equity capital and certain subordinated debt required by FI regulators to be held as a cushion against insolvency. See Tier I and Tier II capital.
Reinvestment Risk ...
In relation to equity capital, when a company reduces the number of outstanding shares by combining a number of low-value shares into one higher-value one. Basically the same as a reverse share split.
Reduced cost of equity capital
FII inflows augment the sources of funds in the Indian capital markets.
Owners' equity (equity capital)
Balance sheet item that represents asset ownership less external liabilities. Owner's equity is the total portion of a corporation belonging to the owners.
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", cost of equity capital The rate of return required by a firm's common stockholders. , cost of funds The interest cost that a financial institution must pay for the use of money.
Capital surplusAmounts of directly contributed equity capital in excess of the par value. Capital turnoverCalculated by dividing annual sales by average stockholder equity (net worth).
Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock.
are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in I.P.O.
An IPO is often, but not always, small companies seeking outside equity capital and a public market for their shares. Investors purchasing shares in IPOs generally must be prepared to accept very large risks for the possibility of large gains.
An investment trust that sells shares and uses the pooled proceeds to buy shares in other companies, in which the equity capital is divided ...(Read more)
Spot Market ...
Leverage increases when bank assets grow at a faster rate than equity capital, such as common stock, which acts as a cushion against losses.
That investment can be a security, private equity capitalization, acquisition, merger, or any other contract. The term "due diligence" finds its roots in Section 11 of the U.S. Securities Act of 1933.
INITIAL PUBLIC OFFERING (IPO) A company's initial sale of stock to the public generally by young, small companies seeking to raise equity capital and create a public market for their stock.
With the expectation of reaping profits, investors fund credit in the forms of (1) debt capital (e.g. corporate and government notes and bonds, mortgage securities and other credit instruments), (2) equity capital (e.g.
Gearing’ describes the level of company debts, expressed as a percentage of its equity capital. So a company with a gearing ratio of 60% has levels of borrowing which are 60% of its equity capital.
Venture capital refers to equity capital which is provided to companies in early stages of development, in the beginning of the life cycle of a new product or a technology.
In practice, it will typically provide equity capital, and it may provide additional guarantees. Other financing is mostly in the form of bank loans or bond issues, so the goal is to present a project that offers predictable cash flows.
A ratchet gives an investor certain rights especially when additional equity capital is raised in a "down-round", i.e. at a lower valuation than before.
Ordinary shares: the equity capital of a company.
Outsourcing: the use of services (such as administration or computing) from separate outside firms instead of using the enterprise's own employees.
Overheads: Indirect cost.
sources of capital to justify the use of the equity capital during the
period. Interest is a contractual and definite amount for a period,
whereas the profit that a business should earn on the equity capital
employed during the period is not.
Most commonly used to describe the level of company debts compared to its equity capital. The gearing ration expresses this as a percentage. Therefore, a company with a gearing ratio of 60% has levels of borrowing equal to 60% of its equity capital.
A form of equity capital with attributes of both debt and equity, with variations including convertible preferred, redeemable preferred, and participating preferred.
Companies making an IPO are seeking outside equity capital and a public market for their stock. Institutional investor A bank, mutual fund, pension fund, or other corporate entity that trades securities in large volumes.
EQUITY CAPITAL A method of financing a business where money is received by the issuance of shares in the enterprise.
ESOP Employee stock ownership plan ...
Where ke is the discount rate representing the cost of equity capital such as the business buyer down payment, E is the percentage of down payment in the total deal structure, kn is the pretax interest on the seller's note, ...
Even in the late nineteenth century, none of the giant industrial corporations drew equity capital from the general investment public. They were privately held and, to expand, drew primarily on retained earnings.
Firstly, it is a market for issuers who wish to raise equity capital by offering shares for sale to investors in an IPO (i.e., a primary market).
"Typically refers to the permissible mixing of different asset classes in a security (e.g. real property, debt, equity) or the capital structure (equity capital and debt) (all of which may not be Islamically acceptable) according to the Shari'a.
Accelerated Bookbuild - A form of offering in the equity capital markets. It involves offering shares in a short time period, with little to no marketing. The bookbuild of the offering is done vey quickly in one or two days.
Various types of debt and equity capital maintained by a company. A company is considered to be more leveraged when it has more debt capital than equity.
Capital Stock:
All ownership shares of a company, both common and preferred.
A company's debts expressed as a percentage of its equity capital. High gearing means debts are high in relation to equity capital.
General Obligation (GO) Bond ...
for large firms to realize substantial investment returns upon exit via an initial public offering (which, post LHC now appears substantially more viable) or divestiture to an even larger player, substantial portions of debt and equity capital are ...
The functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development.
Before we move on to the comprehensive question on Degree of Financial Leverage - Debt/Equity Capital Structure - Indifference EBIT, it is important to know what all these terms mean. That's the goal of this tutorial.
Return on Equity ...
specialised in offering a variety of services, such as acting as a broker in share and bond deals, underwriting new security issues, facilitating mergers and other corporate reorganizations, providing long-term loans and/or equity capital, etc.
Amounts of directly contributed equity capital in excess of the par value.
CAPM
See: Capital asset pricing model ...
Company Warrants
Options issued by companies to raise equity capital. Upon exercise, the company will issue new shares.
Most often used when a corporation has an immediate need for equity capital and a low tax rate, and expects either or both conditions to change. This would make the debenture less attractive if the interest tax-deductibility is lost.
Net Worth = SHAREHOLDERS' EQUITY + PREFERENCE SHARE CAPITAL Shareholder's equity is the sum of PAID-UP equity CAPITAL and reserves.
All shares representing ownership of a company, including preferred as well as common. Also referred to as equity capital.
Capitalization or Capital Structure ...
Seed Money. The initial contribution by a venture capitalist or angel for financing a start-up business. It can be equity capital, but is usually a loan or convertible debt.
Dow Jones Global Indexes are market capitalization weighted indexes that track the stock market performance of more than 3,000 companies in 34 countries. Together they represent more than 80% of the equity capital on stock markets throughout the ...
Initial Public Offering. A company's first sale of stock to the public. Securities offered in an IPO are often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock.
Amount per share set in the ARTICLES OF INCORPORATION of a CORPORATION to be entered in the CAPITAL STOCKS account where it is left permanently and signifies a cushion of EQUITY capital for the protection of CREDITORS.
A company's fixed expenses, such as bond interest, which it has agreed to pay whether or not earned, and which are deducted from income before earnings on equity capital are computed.top
Flat income bond - ...
Accounting rate of return: the ratio of profit before interest and taxation to the percentage of capital employed at the end of a period. Variations include using profit after interest and taxation, equity capital employed, ...
A form of unsecured debt finance provided by merchant banks and development capital fund managers to companies which are in a growth phase, but may not have access to equity capital or are unwilling to dilute their existing shareholdings.
In deciding whether to proceed with a project, FIRMS should calculate whether the project is likely to generate sufficient revenue to cover all the costs incurred, including the cost of capital. Calculating the cost of EQUITY capital can be tricky ...
 See also: Equity cap, Expense, Banks, Capital structure, Expected return
  
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