How Do You Spell EQUITY-CAPITAL?

Pronunciation: [ˈɛkwɪtikˈapɪtə͡l] (IPA)

Equity-capital is a compound word that refers to the ownership of a company. The spelling of "equity" uses the "kw" sound for the "qu" and the "ti" is pronounced "sh" as in fish, resulting in /ˈe.kwɪ.ti/. The word "capital" is pronounced with the "a" sounding like "uh," creating /ˈkæp.ɪ.təl/. Together, the word is pronounced /ˈe.kwɪ.ti ˈkæp.ɪ.təl/. This term is commonly used in finance and accounting to discuss the value of a business and its structure.

EQUITY-CAPITAL Meaning and Definition

  1. Equity capital refers to the investment made in a company by its shareholders, providing them with ownership rights and a claim on the company's assets and earnings. It is a form of funding that represents the shareholders' share of the ownership in the company.

    Equity capital can be obtained through various means, such as issuing new shares or selling existing shares to investors. These shareholders become the owners of the company and are entitled to participate in decision-making processes, including voting on important matters, at general meetings.

    Equity capital is different from debt capital, such as loans or bonds, as it does not require the company to make fixed interest payments or repay the principal amount. Instead, equity capital provides investors with a share of the profits through dividends or capital appreciation.

    The advantage of equity capital is that it does not generate any fixed financial obligations for the company, reducing the risk of bankruptcy in the event of financial difficulties. Additionally, equity capital offers investors the potential for higher returns if the company performs well. However, shareholders also bear the risk of losing their investments if the company underperforms.

    In summary, equity capital represents the ownership stake of shareholders in a company, providing them with rights and claims on the company's assets and earnings. It is obtained by issuing or selling shares and offers investors the potential for returns through dividends or capital appreciation.

Common Misspellings for EQUITY-CAPITAL

  • equit capital
  • eequity capital
  • equity capitall
  • equaty capital
  • equity capitel
  • equitypcapital
  • equity0-capital
  • equity-0capital
  • equityp-capital
  • equity-pcapital
  • equity--capital
  • equitymcapital
  • equity-capietal
  • equitiy capital
  • equity-capitol

Etymology of EQUITY-CAPITAL

The word "equity-capital" is a compound word consisting of two different terms - "equity" and "capital". Here is the etymology of each term:

1. Equity:

The term "equity" originated from the Latin word "aequitas" meaning fairness, justice, or equality. In the context of finance and investing, equity refers to ownership or shares in a company. It represents the ownership interest in assets after deducting any liabilities. The concept of equity as fairness or justice has been present since ancient Roman and Greek times.

2. Capital:

The term "capital" derives from the Latin word "caput" meaning head or principal. In finance, capital refers to the financial assets or resources that are used to generate income or wealth. It can include funds, property, machinery, equipment, or any other asset that contributes to the production of goods or services.

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