Details to understand equity for beginners.
The term "Equity" Is basically heared by almost each and every people. I am going to tell you the following information :
1. What is Equity.
2. When it is used by an organization.
Coming to the point, what is equity: Equity is form of an financial instrument which is issued by an Organizations to raise the money from the public at large or from the related person of the organization. It helps to organization to grow more financially and use the money of public and use them in core area of their business, by doing this not only that organization makes money but in fact they give a certain percentage of revenue to the public at large also on the surplus money.
Second point is when an organization issue an equity:
The answer is very simple when an organization is in need of money they issue they equity to raise the fund from public.
Huh. Never thought about it that way. Thanks!
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