In accounting and finance, equity is the residual value or interest of the most junior class of investors in assets, after all liabilities are paid; if liability exceeds assets, negative equity exists. In an accounting context, shareholders’ equity (or stockholders’ equity, shareholders’ funds, shareholders’ capital or similar terms) represents the remaining interest in the assets of a company, spread among individual shareholders of common or preferred stock; a negative shareholders’ equity is often referred to as a positive shareholders’ deficit. At the very start of a business, owners put some funding into the business to finance operations. This creates a liability on the business in the shape of capital as the business is a separate entity from its owners. Businesses can be considered, for accounting purposes, sums of liabilities and assets; this is the accounting equation. After liabilities have been accounted for, the positive remainder is deemed the owners’ interest in the business. This definition is helpful in understanding the liquidation process in case of bankruptcy. At first, all the secured creditors are paid against proceeds from assets. Afterwards, a series of creditors, ranked in priority sequence, have the next claim/right on the residual proceeds. Ownership equity is the last or residual claim against assets, paid only after all other creditors are paid. In such cases where even creditors could not get enough money to pay their bills, nothing is left over to reimburse owners’ equity. Thus owners’ equity is reduced to zero. Ownership equity is also known as risk capital or liable capital.
Etymology
Etymology
The word ‘equity’ is derived from the Latin phrase “aequus,” meaning “even” or “equal.” This reflects the core concept of equity, which is to promote fairness and equality between individuals, organizations, and entities. It also has its roots in the legal system, where it is used to describe the fairness of a decision or ruling in a court of law.
In finance and accounting, equity has come to refer to the ownership interest an individual has in a company. This can include stockholders’ equity—the portion of a company’s assets that are owned by its shareholders—along with other forms such as partner’s equity or owner’s equity. Equity can also be seen as a form of capital generated from investments or contributions from shareholders or owners into a company.
In financial accounting, equity is often used interchangeably with net worth, which represents the difference between total assets and total liabilities for an entity. In this context, equity represents any asset that does not have to be repaid at any given point in time. Examples of such assets include cash on hand, property investments, intellectual property rights, and even intangible items like goodwill.
Equity has also been used more broadly in modern society to describe economic justice or parity between different people or groups. In this context, it represents an effort to level the playing field by ensuring everyone has equal access to resources and opportunities regardless of race, gender identity, sexual orientation, age etc., so that no one group finds itself disadvantaged due to systemic discrimination or exclusionary practices.
The concept of equity is closely linked with notions of fairness and justice within society – something which remains a major theme throughout history across many cultures worldwide – and continues to be widely debated today as economists continue to strive for greater socioeconomic equality around the world. BeliefsBeliefs
Equity is a concept that has long been used in both legal and financial contexts, as well as to discuss economic justice. In its most basic form, equity is the idea of fairness and equality between people or entities, and this concept has been embraced by many societies throughout history.
In the legal system, equity is often used to describe fairness or justice in court rulings. This includes ensuring that decisions are made with an impartial perspective free from bias or favoritism towards any particular party involved in a case. Equity also governs how assets are divided between parties in the event of a dispute or lawsuit.
In finance and accounting, equity is typically used to refer to the ownership interest individuals have in a company. This can include stockholders’ equity—the portion of a company’s assets owned by shareholders—as well as partner’s equity or owner’s equity. Equity represents any asset that does not have to be repaid at any given point in time, such as cash on hand, property investments, intellectual property rights, and even intangible items like goodwill.
More broadly, equity has come to be used as a term for economic justice—or parity between different people or groups within society—in order to level the playing field and ensure everyone has equal access to resources and opportunities regardless of race, gender identity, sexual orientation, age etc., so that no one group finds itself disadvantaged due to systemic discrimination or exclusionary practices. This concept of economic justice is closely linked with notions of fairness and justice within society – something which remains a major theme across cultures worldwide – and continues to be widely debated today as economists strive for greater socioeconomic equality around the world.
The beliefs associated with equity vary from culture to culture but typically revolve around certain core values such as fairness, compassion, respect for others’ rights and freedoms regardless of socio economic differences existing between them; seeking consensual solutions when disputes arise; sharing resources equitably; protecting vulnerable members from exploitation or oppression; valuing diversity; promoting education; encouraging responsible decision making processes; supporting sustainable environmental policies; upholding human rights; fostering meaningful personal relationships through trust building exercises between different parties involved etc… All these beliefs are essential elements contributing towards creating an equitable society which offers protection against unfairness while striving towards greater social cohesion among its inhabitants founded upon principles of mutual respect and understanding.
Practices
Equity Practices refer to the methods and procedures used by businesses, organizations, and individuals to ensure fairness, impartiality and justice in the workplace. These practices can range from hiring, compensation and promotions to training, monitoring performance and rewarding hard work. Equity practices also include multiple forms of diversity such as gender, race, ethnicity, sexual orientation and disability.
Many employers feel that having a diverse workplace is beneficial for both the employees and the organization as a whole; it improves communication between cultures and generations, leads to new ideas and creativity, promotes teamwork among different backgrounds and cultures, enhances innovation in problem solving strategies, increases organizational effectiveness and produces a sense of well-being for all employees.
An example of an equity practice is having a comprehensive recruitment process which includes the use of an objective selection procedure for hiring employees. This objective selection procedure should identify candidates using criteria such as job qualifications or experience rather than personal attributes like race or gender. This can help avoid discrimination when selecting potential candidates as they are evaluated based on their abilities instead of any prejudices or stereotypes associated with certain demographics.
The use of affirmative action policies also falls under equity practices. Affirmative action seeks to correct past discrimination in employment by providing equal opportunities to qualified individuals regardless of race, sex or other factors that have been historically disadvantaged due to systemic bias.Affirmative action policies can be seen in many areas including recruitment processes, promotion decisions and training programs. These policies aim to increase representation from marginalized groups within an organization which can then lead to greater diversity in perspectives being shared among these different groups within the workplace environment.
Other equity practices may include offering flexible work hours or telecommuting options for working parents or those with disabilities who may need special accommodations as part of their job duties; providing childcare at the workplace so that working parents don’t have to sacrifice quality time with their children; requiring managers to take sensitivity classes around issues related to diversity such as sexual orientation and religious beliefs; implementing anti-harassment policies which outline specific behaviors that are deemed inappropriate; or providing educational advancement opportunities such as tuition reimbursement plans for employees who want further education beyond high school level courses.
Overall equity practices seek to create fair workplaces where everyone feels safe regardless of background or identity while still maintaining an effective business environment which allows companies and organizations to succeed financially while doing right by its employees at the same time. Implementing these equitable measures not only helps reduce discrimination but can also benefit businesses by fostering more productive teams through increased trust between coworkers due to better understanding between each other’s differences which leads ultimately leads towards greater success within an organization
Books
Books are a valuable source of knowledge and information, and can be used to gain insights into the equity markets. Equity books provide investors with guidance on how to analyze investments and make informed decisions about their own portfolios. Equity books cover topics such as financial theory, risk management, portfolio construction, trading strategies, market analysis and valuation methods.
Equity books address the complexities of investing in stocks, bonds, mutual funds, options and other financial instruments that trade on the public markets. They often focus on topics such as asset allocation strategies, diversification techniques, taxation issues and technical analysis tools to help investors identify trends in equity markets. Many books also discuss fundamental analysis techniques to help readers understand the intrinsic value of stocks.
In addition to providing advice for analyzing investments, equity books can also offer valuable tips on how to manage a portfolio over time. Investors should look for books that explain the various aspects of portfolio management including position sizing techniques, rebalancing strategies and rules-based decision making processes. Books can also provide insight into risk management principles such as diversification or hedging techniques which can help manage portfolio volatility.
Equity books are available in various formats including hardcover editions, paperback versions or ebooks. Some may be written by industry professionals while others may be authored by experts or academics with detailed knowledge of equity markets or particular asset classes; others simply serve as guides offering practical advice on investing in the stock market. Ultimately it is up to individual investors to select an appropriate book based upon their level of understanding and goals for investing in equities.
Demographics
Equity and Demographics are closely related topics and, as such, essential to understand in terms of socio-economic development. Equity can be defined as the fairness or impartiality in the distribution of resources, services, and opportunities. To achieve this, it is important to consider demographics which refer to the composition and characteristics of a population such as age, gender, race, and income levels.
The concept of equity has been embedded in various democracies around the world with governments introducing policies that aim to create equal access to resources regardless of demographic factors. The principle is based on the idea that everyone should have an equitable opportunity to participate in economic activities, access quality education and healthcare services, and experience economic growth within their society.
In recent decades there has been a growing focus on equity from both governments and non-governmental organizations (NGOs) aiming to reduce disparities between different populations. This has been done through increasing awareness about the importance of addressing inequities and implementing strategies to decrease inequality based on demographic differences. In some cases this could involve providing additional funding for vulnerable groups or enshrining certain rights into law so they cannot be taken away by a government or ruling body.
Efforts have also been made to increase diversity within businesses by implementing programs such as affirmative action which provide a boost in terms of hiring practices. Additionally tax reform initiatives seek to decrease economic inequality through progressive taxation systems where those at higher incomes pay more than those at lower ones. These types of initiatives often take into consideration demographic factors when determining how much someone should pay in taxes thus helping to create an environment where everyone can benefit equally from the economy regardless of their background or current status in life.
Overall understanding equity through demographics is crucial for achieving fair outcomes for all individuals within a society regardless of their backgrounds or circumstances. By creating policies that promote equality and targeting vulnerable groups through specific initiatives these disparities can be reduced leading towards greater social cohesion.
Businesses / Structures / Denominations
Equity, in general terms, is the value of a company’s assets minus its liabilities. It is one of the most important aspects of corporate finance and securities law. Equity refers both to the ownership interests held by shareholders in a business as well as to the amount of capital invested in a business. The term also encompasses different types of businesses or structures and denominations or designations applied to them. These include corporations, limited partnerships, limited liability companies (LLCs), and trusts.
Corporations are legal entities that are owned by multiple shareholders who are entitled to vote on matters brought before the corporation’s board of directors. Corporations have limited liability protection for their shareholders and may issue securities such as stocks, bonds, and other financial instruments. A corporation’s equity generally increases when its investments or operating profits increase or when it issues new shares of stock or pays dividends. Conversely, its equity decreases when it incurs losses or pays dividends out of current earnings rather than accumulated reserves.
Limited partnerships combine elements from both partnerships and corporations. They are typically created with two classes of partners: general partners who manage the day-to-day operations and have unlimited personal liability for all obligations taken on by the partnership; and limited partners who contribute capital but do not actively manage the partnership and have limited personal liability for partnership debts and obligations. Limited partners enjoy tax benefits similar to those provided to individuals investing in other forms of equity investments while still having some control over management decisions through their voting rights as shareholders.
Limited Liability Companies (LLCs) provide similar benefits as corporations but without many formalities required by state laws concerning shareholder meetings, directors’ reports, etc., allowing more flexibility than with corporations when organizing a business entity. LLCs are popular among small businesses that want protection from creditors without having to form a separate corporation or adhere to additional corporate formalities. The owners of an LLC are called members and each member contributes money towards the company’s capitalization in exchange for an interest in profits generated by the company’s activities.
Finally, trusts refer to arrangements whereby property is transferred from one party (the settlor) to another party (the trustee) who holds it for beneficiaries according to instructions set forth in a trust document or contract executed between the settlor(s) and trustee(s). Trust funds can be used for any purpose including investment management, charitable giving, establishment of trusts funds for family members during lifetime or after death, estate planning purposes such as avoiding probate courts ,or creating irrevocable life insurance trusts whose income can be reinvested into equities or other asset classes depending on trust rules established at inception .
In summary, there are several different types of businesses / structures / denominations associated with equity investing including corporations, limited partnerships, LLCs & trusts which offer various levels of protection & benefits depending on individual circumstances & needs . As always , investors should consult with qualified professionals prior to making any investment decisions .
Cultural Inflience
Cultural Influence is the impact that cultures have on each other, both in terms of their values, beliefs and practices. In a globalized world, where different cultures interact extensively through trade, travel, communication and media, it is impossible to ignore the influence that one culture can have on another. The primary source of cultural influence is through the exchange of ideas, products and services.
In terms of equity and justice, we should be mindful of how cultural influence affects our decisions in order to ensure fairness. This is especially important when considering marginalized communities who may not have access to resources or equal representation in positions of power. It is also important to recognize that cultural influences are not always positive; they can lead to harmful stereotypes or discrimination against certain groups.
When considering cultural influences we must consider the full range of possibilities and how they will affect those involved. We must consider how our values and beliefs are shaped by external influences such as popular culture or media trends. We should also analyze how these influences can shape our understanding of social norms and expectations regarding gender roles, sexuality or race/ethnicity.
It is also important to recognize the potential for cultural exchange between different communities and how this exchange can lead to greater understanding between cultures as well as opportunities for collaboration and mutual benefit. We must strive towards a global society where all people are valued equally regardless of race, gender, ethnicity or any other characteristic which could affect their ability to contribute value-added activities within their respective societies.
Finally, we must be mindful that cultural differences will always exist; however with proper understanding we can learn from one another’s experiences in an effort to build bridges rather than walls between us all in pursuit for true equity for all people around the globe.
Criticism / Persecution / Apologetics
Equity is the concept of fairness, justice, and impartiality. The concept has been around for centuries, with different societies having their own ideas of what equity looks like. In today’s world, equity encompasses the notion that all people within a society should be treated equally regardless of race, gender, religion, or any other factor. It implies that everyone should have access to the same basic rights and opportunities as everyone else.
Criticism of equity has been around for as long as the concept itself. Critics point out that many policies and practices that are intended to promote equity can actually do more harm than good. For example, some argue that affirmative action policies, while well-intentioned, can inadvertently lead to reverse discrimination, where members of minority groups are given preferential treatment over similarly qualified members of majority groups. Meanwhile, others criticize social programs such as welfare or unemployment benefits for creating an environment in which people become dependent on government assistance instead of striving for self-sufficiency through their own work and effort.
Persecution against those who promote and advocate for equity is also common throughout history. Those who speak out against injustice often face harsh punishments from governments or powerful institutions seeking to preserve their own power and status under the guise of “maintaining order” or “preserving tradition”. In modern times this persecution often takes the form of laws prohibiting certain types of speech or activities deemed dangerous to a ruling party’s power structure. For example, in many countries it is illegal to organize protests or political rallies without first obtaining permission from authorities.
Apologetics have also been used by those advocating for equitable treatment and justice throughout history – though sometimes with limited success due to factors such as resistance from powerful institutions or fear among members of minority groups who fear retribution if they speak up in favor of change. Apologists use a variety of strategies such as citing scientific research studies supporting their cause; using logic and rational arguments; appealing to emotions; using religious texts or teachings; promoting public education campaigns; providing historical context; engaging with grassroots organizations working on social issues; leveraging international bodies such as the United Nations; mobilizing citizens via peaceful protest; etc., in order to build support for their goals and persuade those in positions of power or influence to take action towards achieving greater justice and equality within society.
It is important to note that although criticism and persecution are commonplace when it comes to discussions regarding equity, apologists remain an essential part in pushing forward progress made towards achieving justice and equality within our societies today. Despite countless obstacles along the way – whether they be legal restrictions imposed by governments or even individuals’ personal biases – advocates have continued fighting for more equitable treatments throughout history thanks largely in part due to their unwavering commitment toward achieving this goal despite opposition encountered along the way. As we move into a new era with ever-evolving definitions of what “equity” means across different contexts (economic inequality among nations/regions/ethnicities/cultures/etc.), it will be up to these same advocates — armed with facts, logic ,and compassion –to continue leading us down a path towards a more just future where every person has access to equal opportunities based on merit rather than circumstance alone .
Types
Equity is a term used in accounting to measure the ownership of assets and liabilities within an organization. It is used as a tool to assess the financial position of a company and determine its worth. Equity can be referred to as the net worth or book value of an entity, which includes total assets minus total liabilities. There are many different types of equity that can be measured and tracked, each with their own unique characteristics.
Common Stock Equity: Common stock equity represents ownership in a company, typically through voting rights. It also allows for dividends to be issued when declared by the board or management team. Dividends can either be paid out on a regular basis or as special one-off payments. The amount of dividend that is paid out depends on the performance of the company’s stock over time.
Preferred Stock Equity: Preferred stock equity gives shareholders priority over common shareholders in terms of voting rights, but they do not receive any dividends unless they have been declared by company management or board of directors. This type of equity is often seen in mature companies, where there are no plans for significant growth in the short term and risk may need to be mitigated through this form of investment.
Retained Earnings Equity: Retained earnings equity represents profits that have been reinvested back into the business rather than paid out as dividends. This type of equity accumulates over time, allowing businesses to build up reserves and use them for capital investments or other operating expenses without having to borrow money from lenders or investors.
Options Equity: Options equity refers to securities such as options contracts that give investors the right (but not the obligation) to buy or sell a certain asset at a pre-defined price at some point in the future. Options are regularly used by investors who wish to hedge against potential losses from their initial investments, as well as those who wish to speculate on potential price movements without having to invest directly in stocks or bonds themselves.
Other Types: Other types of equity include convertible debentures, warrants and convertible preferred stock which allow holders different forms of flexibility depending on individual circumstances and objectives. In addition, derivatives such as futures contracts and swaps are frequently used by investors looking for short-term gains based on changes in market conditions over time.
Overall, understanding and appreciating all types of equity can help provide insight into an organisation’s financial health while helping make informed decisions regarding investments and risk management strategies alike – both critical aspects when it comes to long-term success within any business environment today!
Languages
Equity in language is a concept that relates to fairness and equality. It is the idea that everyone should have access to language and be able to use it to communicate, both linguistically and non-linguistically. Equity in language refers not only to the right of every person to communicate, but also the right for their language or dialect to be respected and accepted. This includes making sure that all individuals have access to education, resources, and opportunities that not only allow them access to communication, but also enable them to engage with and understand other languages.
There are many ways in which language equity can be addressed through policy and practice. Language policies such as those implemented by governments can help ensure that there are adequate resources available for those who need them, including materials for learning new languages or dialects, translation services for minority groups, and educational support for linguistic diversity. Additionally, legislation can be used to protect certain languages from becoming extinct due to oppressive forces such as colonialism or globalization.
Language equity is also based on recognizing social justice in relation to how different languages are treated within society. For example, it is widely known that some languages may be perceived as being more prestigious than others; this has an effect on educational opportunities and employment prospects for individuals who speak these languages. As such, it is important that everyone has access to educational programs specifically designed around their native language so they can learn the same subjects at the same level as those who speak a dominant language.
The issue of language equity extends beyond just having access: it needs recognition of individual identities associated with one’s native tongue as well as respect for cultural heritage associated with this identity. Communities should strive towards creating an environment where diverse cultures come together without any forms of prejudice or discrimination against any particular group of people based on their linguistic background or beliefs. This requires fostering a culture of education about different languages so people can appreciate the richness unique cultures bring into our lives instead of feeling threatened by them.
In conclusion, equitable language rights must extend beyond simple linguistic comprehension – they must honor each individual’s unique identity and culture while at the same time providing opportunities for all members of society regardless of their mother tongue or country of origin. It is only through collective effort among communities working together with open mindsets towards understanding one another’s backgrounds that true equity in language will become a reality.
Regions
Equity is a legal concept that refers to fairness and justice, particularly in dealings between people or organizations. In the context of regions, equity is largely concerned with the allocation of resources and access to services in order to ensure that everyone has an equal opportunity for success regardless of their location.
In many cases, geographic area is used as a determinant of equality when providing resources or services. This often results in disparities based on where someone lives. Areas with high population density or poverty levels tend to be the most disadvantaged because they lack adequate funds and resources due to their economic situation. The disparities created by regional inequalities can create further gaps between social classes, leading to lower standards of living and poorer educational outcomes.
In order to address regional inequality, governments must focus on both macro-level policies and more localized measures that tackle inequality at its source. At the higher level, countries should work towards developing uniform distribution systems which allocate resources fairly across regions regardless of population size or wealth. For example, education funding should be allocated based on student numbers as opposed to teaching staff levels or school infrastructure. Similarly, healthcare budgets need to be evenly distributed among provinces so that all citizens can access quality care regardless of where they live.
At a more localised level, governments must implement specific policies which target regional inequality directly. These include initiatives such as job creation schemes aimed at reviving stagnating economies; tax breaks for businesses investing in disadvantaged areas; youth apprenticeship programmes; public transportation links connecting rural areas with major urban centres; subsidized housing projects; targeted investment in infrastructure development; and social protection policies tailored towards vulnerable groups living in poverty-stricken regions.
Ultimately, equitable provision of resources and services across all regions requires hard work from both government institutions and civil society organisations alike – each working together to create an equal playing field for everyone no matter where they may live. By doing this we can ensure that all citizens have equal access to opportunities for success and quality of life – thus paving the way to a more equitable society for everyone involved.
Founder
A ‘Founder’ is an individual who has the primary responsibility of establishing a company or other business entity and providing it with an initial focus. This person will usually have a vision for the new business, be able to identify and attract investors, hire staff and manage resources in order to get the business up and running. It is not uncommon for the founder to also provide financial support at the start-up stage.
In order to achieve success, founders must have a range of skills such as marketing, accounting, legal knowledge and experience with technology. They must also be able to mobilise resources, develop relationships with key stakeholders, assess risks and think strategically. Being creative and persistent are also important traits for founders.
Equity refers to ownership of assets such as stocks, bonds or property. In a business context, equity typically applies to ownership of shares in a company’s capital stock or interest in its profits. Founders often put their own equity into businesses they create by investing money or contributing resources in exchange for an ownership stake in the venture. By doing this they are taking on financial risk but also have potential upside potential if their venture succeeds.
The amount of equity provided by founders depends on individual circumstances and is often negotiated with investors or other parties involved in the venture’s structure. Common types of equity include common stock (also known as ordinary shares), preferred stock (which may offer additional rights such as higher dividends) or convertible securities (which convert into other kinds of securities such as common shares over time).
By offering equity in their business ventures, founders are making long-term commitments towards achieving success. As well as committing their own funds and resources, founders’ main contribution to building value comes through their leadership abilities, expertise and drive which can help make even small start-ups successful. Ultimately successful entrepreneurs need both technical skills (such as understanding finance) along with intangible qualities like passion and determination – all essential ingredients when it comes to launching a successful business venture with equity held by its founder(s).
History / Origin
Equity is a legal concept that has been around since Roman times, and it is rooted in the idea of fairness. Equity is used to refer to a system of justice where an individual’s rights are protected and they are treated fairly under the law. It is also used to refer to a body of principles developed by courts over time to help decide cases.
The concept of equity can be traced back to Roman Law, which was based on natural law. This legal system focused on establishing rules that were seen as just and fair, rather than exacting punishment for wrongdoings. In medieval Europe, equity was further refined through the development of Canon Law.
In England during the 16th century, Court of Chancery began developing its own set of laws called equitable principles, or “maxims”. These maxims were designed to supplement existing common law and provide remedies for situations not addressed by common law rules. The development of equitable principles heavily influenced the United States’ legal system in subsequent centuries, particularly with regard to contract law and trust law.
Today, many countries have both “common law” and “equity” systems in place. Common law refers to laws established by prior court decisions while equity applies more general standards such as fairness or reasonableness that may vary from case-to-case basis depending on the particular facts involved in each instance. Courts will often look at both common law and equity when deciding a case; however, if there is a conflict between them then equity will usually prevail over common law due to its more flexible nature.
The cornerstone principles in equity are known as “fiduciary duties”, which means acting loyally on behalf of another person or entity while avoiding any potential conflicts of interest or self-dealing activities related to their interests. These fiduciary duties also apply beyond traditional relationships such as those between lawyer and client or doctor and patient – they can be used for any situation where one party has assumed responsibility for another’s well being or property interests. Fiduciary duties ensure that parties have a duty of care towards each other when forming agreements or relationships so that their rights are respected and their interests are fairly represented throughout any dealings between them.
In summary, equity has been an important part of legal systems around the world since ancient times, providing fairness and protection for individuals who come into contact with the legal process without relying solely on pre-established codes set out by common law proceedings alone. Equity ensures that rights are respected across all transactions regardless of whether established contracts exist or not, providing additional support for those who may otherwise be left unprotected in certain situations due to existing laws not taking into account all circumstances involved in each case.
