imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''Financial reporting - balance sheet''. | | 1. ''Credit risk - insolvency.'' |
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| Amounts in the balance sheet of a company representing the book value of the interests of the shareholders.
| | Priority ordering of payouts in a insolvency. |
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| It includes share capital, cumulative retained profits, and other reserves.
| | Ranking is particularly important when there are insufficient assets to satisfy all claims. |
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| It is also known as 'total equity' or 'shareholders' funds'.
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| | 2. ''Bank regulation - liquidity.'' |
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| The book value of total equity is equal to the book value of the company's net assets. | | The ordering of liquidity quality of assets, for regulatory liquidity quality. |
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| These two items in a balance sheet always balance - so long as there are no errors.
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| This is what is meant by a balance sheet "balancing".
| | 3. ''Other evaluations.'' |
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| 2. ''Financial reporting''.
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| Comparable amounts for financial reporting entities that are not companies.
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| 3. ''Capital investment.''
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| The capital of a firm invested by those accepting the greatest degree of risk, for example the holders of ordinary shares (also known as common stock or common equity) in a company.
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| 4. ''Securities.''
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| Securities representing the rights of the risk capital investors in 3. above.
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| For example, ordinary shares, also known as common stock.
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| 5. ''Banking and bank regulation''.
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| Abbreviation for common equity.
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| 6. ''Net asset value.''
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| The net value of an asset, after deducting any debt relating to it or secured on it.
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| For example, the value of a residential property, after deducting the amount of a mortgage borrowing secured on it.
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| If the value of the borrowing exceeds the value of the asset, the situation can be described as 'negative equity'.
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| :<span style="color:#4B0082">'''''Example: Equity and Negative equity'''''</span>
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| :A house is worth EUR 400k.
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| :A borrowing of EUR 300k is secured by a mortgage over the house.
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| :The net worth is the difference between the value of the the house (asset) EUR 400k and the borrowing (liability) EUR 300k
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| :400k - 300k = EUR 100k
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| :The Equity in the house is the difference between the current value, and any loans secured over it.
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| :This is also EUR 100k.
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| :If the value of the house falls to EUR 250k, the borrowing now exceeds the value of the asset.
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| :This is 'negative equity' (of EUR 50k = 250k - 300k).
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| 7. ''Law''.
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| A legal system that resolves disputes between persons by resort to principles of fairness and justness.
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| 8. ''Ethics - governance''.
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| Fair treatment between different individuals and different groups.
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| :<span style="color:#4B0082">'''''Equity & inclusion are priority for investors'''''</span>
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| :“Diversity, equity and inclusion is emerging as a priority topic for investors, with some of the world’s largest asset managers reporting increased engagement with portfolio companies in this area."
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| :''FitchRatings - November 2021.''
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| | Any other systematic ordering by quality or importance. |
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| == See also == | | == See also == |
| * [[An introduction to equity capital]] | | * [[An introduction to equity capital]] |
| * [[Asset manager]] | | * [[Credit rating]] |
| * [[Assets]] | | * [[Credit risk]] |
| * [[Balance sheet]]
| | * [[Dilution]] |
| * [[Blue chip]]
| | * [[Greenium]] |
| * [[Book value]]
| | * [[Hierarchy]] |
| * [[Capital]]
| | * [[Insolvency]] |
| * [[Capital employed]]
| | * [[Level 1B liquid assets]] |
| * [[Capital structure]]
| | * [[Merit order]] |
| * [[Common equity]]
| | * [[Net promoter score]] |
| * [[Common law]]
| | * [[Obligation]] |
| * [[Common stock]]
| | * [[Order]] |
| * [[Compound instrument]]
| | * [[Pari passu]] |
| * [[Debt]]
| | * [[Pari passu clause]] |
| * [[Debt for equity swap]]
| | * [[Preference]] |
| * [[Diversity]]
| | * [[Rank]] |
| * [[Dividend]]
| | * [[Ratings]] |
| * [[Dividend growth model]]
| | * [[Report card]] |
| * [[Entity]]
| | * [[Senior]] |
| * [[Equity cost of capital]]
| | * [[Seniority]] |
| * [[Equity instrument]]
| | * [[Statement of affairs]] |
| * [[Equity investments]]
| | * [[Structural subordination]] |
| * [[Equity risk]]
| | * [[Subordination]] |
| * [[Equity structured deposit]] | | * [[Time subordination]] |
| * [[Equity swap]] | | * [[Unsecured creditor]] |
| * [[Fitch]] | |
| * [[Green equity]] | |
| * [[Hybrid capital]] | |
| * [[Inclusion]]
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| * [[Kay Review]]
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| * [[Liabilities]]
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| * [[Liabilities and equity]]
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| * [[Market/book ratio]]
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| * [[Member]] | |
| * [[Mezzanine]]
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| * [[Mortgage]]
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| * [[Negative equity]]
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| * [[Net assets]] | |
| * [[Net worth]] | |
| * [[Ordinary shares]] | |
| * [[Own funds]] | |
| * [[Private equity]] | |
| * [[Reporting entity]] | |
| * [[Reserves]] | |
| * [[Return on equity]] | |
| * [[Risk]] | |
| * [[Share]] | |
| * [[Share capital]] | |
| * [[Shareholder]] | |
| * [[Shareholder value]]
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| * [[Shareholders’ funds]] | |
| * [[Shareholders’ wealth]]
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| * [[Stakeholder]]
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| * [[Statement of changes in equity]]
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| * [[Stock]] | |
| * [[Total Loss Absorbing Capacity]] | |
| * [[Total return swap]] | |
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| [[Category:Corporate_finance]] | | [[Category:Accounting,_tax_and_regulation]] |
| [[Category:Compliance_and_audit]] | | [[Category:The_business_context]] |
| | [[Category:Identify_and_assess_risks]] |
| | [[Category:Manage_risks]] |
