Questions tagged [equity]

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0answers
33 views

How does a stock trade at an exchange that isn’t where it is listed?

For example, AAPL is listed on NASDAQ but I see that NYSE has some trading volume for that symbol. Does NYSE just act as the matching engine, fill the orders, and then report the trades to the listing ...
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9answers
7k views

Should I buy a nicer house in a worse area for less than I budgeted?

I am a single male in my mid twenties, based in the UK and looking to buy my first home. I see this home as a 'stepping stone' home and intend to live in it for 5-15 years until I get a partner and ...
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0answers
48 views

Seeking Equity Split Advice between four co-founders, two of them who have invested money and two who haven't

Founder A,B,C,D are equally responsible for the execution and the idea. At the pre-development stage, Founder A invests $12,500 and Founder B invests $7,500, whereas Founder C and D aren't investing ...
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1answer
35 views

Startup Expirable Equity

I own a startup that is user-based. We are close to finishing the building of the prototype so therefore it has no users, no revenues, nor any investment. I have 4 unpaid co-op students working full-...
1
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1answer
37 views

NPS Tier-1 Account

If the present fund value is less than the total invested amount in NPS-Tier 1 account and we change the scheme preference(I mean change the % allocation in Scheme E,G,C) then do we have to book ...
0
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1answer
31 views

Diluting Shares vs Reserving Shares

I often read about a startup company diluting its shares, in order to provide additional shares for an investor during an investment round. This means that the ownership % for the co-founders is ...
0
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2answers
60 views

How to find total equity from balance sheet of a company?

I was looking for balance sheet of a company to know about it's total assets, liabilities and equity price. I tried apply basic formula to get equity, which is 'Assets = Liabilities + Equity'. But, ...
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0answers
37 views

Mutual Funds Investment advice needed for beginner

I am planning to start investing in mutual funds now. I am a beginner and young(28). I plan on doing investments as a lump sum and SIP. I plan to invest 5 lakhs via lump sum now and SIP of 20k per ...
2
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1answer
40 views

What category is the following: Naked call or covered write

I would like to do the following: Just before market close on a Monday, buy 100 shares of X and simultaneously sell 1 X call option deep ITM. I have sufficient funds in my account to buy 100 shares ...
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3answers
143 views

How does equity work if you use equity to for a down payment on a second house?

If home equity is used as a down payment on a second home, how much initial equity does the second home have? is it equal to the equity-down-payment as in a cash down payment for a home? Say you have ...
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0answers
86 views

How to calculate the share price after stock dilution, when the company is being taken over?

Currently, YES BANK might be taken over by SBI, and RBI has announced that SBI will get 49% equity at no less than 10 rs per share. YES BANK shares are currently trading at 16.60. There are currently ...
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2answers
5k views

Do “normal” shares in large companies pay equity, as well as profit?

If I buy shares in a big company like Intel or Microsoft I (can) receive a dividend. So these shares (can) pay "profit". However, if the company is bought, do i also receive a split of the "equity"/...
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1answer
66 views

Why does private equity have a higher fee structure than public markets?

I'm trying to understand why private equity tends to have higher fee structures than public markets. My hunch is that it takes more skill/risk to manage illiquid assets. I'd also imagine more due ...
3
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0answers
74 views

Equity cannot be redeemed at the option of the holder

I was going through Tier 1 Capital on Investopedia. I came across this note a couple of times in the article. Equity capital is inclusive of instruments that cannot be redeemed at the option of the ...
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2answers
116 views

How can I estimate the outstanding shares of my private employer?

When I joined the startup I currently work for, I was offered a number of shares as part of my compensation. Unfortunately, I've been given no indication as to what they're actually worth with respect ...
2
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2answers
128 views

Dilution of investment; how does it happen?

I sometimes hear my investing friends talking about their investments being diluted down, but I've never had the courage to have one of them explain it to me. From my perspective, if you buy 20% of ...
1
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0answers
17 views

Warrant extension - would this have any tax implications?

If someone has warrants to purchase shares in a private C corp in the US, if they were about to expire and they got the company to agree to extend them, does this have any tax implications? These are ...
1
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1answer
45 views

Is a foreign equity holder liable for business debt?

I'm an Indian citizen residing in India. If I get 20% equity in a US company, am I responsible for the company's debts (current and future debts)? Note that this is a sweat equity (no money invested)....
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4answers
4k views

Are stocks and bonds actually liquid?

Investopedia gives the standard answer of "yes": https://www.investopedia.com/ask/answers/032715/what-items-are-considered-liquid-assets.asp An asset that can readily be converted into cash ...
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1answer
117 views

Can a US company give equity to an Indian?

Is it possible for a US company to give some percentage of its ownership to an Indian? Background: I'm an Indian citizen working with a US client. I'm located in India. Together we are developing a ...
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3answers
92 views

If a business used the following diagram, would it be technically selling stock?

diagram The process is as follows: The consumer (A) purchases a good or service from a business (B). The consumer receives the good or service and also receives points, similar to that of a loyalty ...
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0answers
25 views

Do LLC Profit Shares follow the same allocation rules as equity options?

I've founded and bootstrapped an LLC and a friend wants to help out with development and not take an hourly contractor rate. He's aligned with the mission and wants compensation in the form of stock ...
6
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1answer
298 views

Can two companies cross hold each others 100% shares

Can a company A hold 100% of shares in company B and can this company B have 100% of shares in company A I couldn't find any information that dissolve this activity.
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2answers
285 views

How do I assess the value of equity offered by my employer compared to a salary raise?

I work for a small-to-mid-sized (~20 employees) tech startup in Europe. I was hired two years ago as one of the first employees after the founders. When I joined, we had an agreement that after a ...
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2answers
87 views

How do I properly allocate capital into the different stocks I own?

Late last year (Aug. 2018), I started building a portfolio of stocks using fundamental analysis and management analysis. The portfolio is mainly built around high-income, dividend-paying companies ...
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0answers
26 views

What happens to net assets in case of increasing NPAs(Non-Performing assets)?

The bank's profit is measured as Return on Assets which is the ratio of Bank’s net profits and Net assets. In case of increasing NPAs, the bank's net profits will decrease, but what will happen to net ...
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0answers
32 views

Leveraged buyout (LBO) valuation: multiples

When you build a LBO analysis, you have entry multiple (maybe work back from your required IRR) and exit multiple that are usually based on EBITDA. Do you always choose EBITDA? What about other ...
0
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1answer
88 views

Pay the downpayment in 24 months or save money then pay the downpayment in 1 go?

I am planning to buy a house. In our region, you have the option to either pay the downpayment in a monthly basis if it is too much of an amount for you. That is the first option. 2nd option is to ...
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2answers
175 views

Gift of Equity Tax when selling to family member

I am buying a house from my brother, the house is worth $220,000. and my brother willing to sell it to me for whatever the house is owe the bank, which is $170,000. He is willing to give me all of the ...
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1answer
126 views

Can ETF be inefficient?

For ETF, it seems the price is determined by ask/bid and trading price. Can it be inefficient, that the trading price deviates from the underlying tracked index? For example, intentionally buy and ...
6
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2answers
306 views

What are the most common partner equity distribution for startups?

Background I'm doing some due diligence regarding a US registered (Delaware C-corp) tech startup in Europe, where the founders are located and living in the EU. Although the business idea is very ...
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2answers
2k views

Why are goodwill impairments on the statement of cash-flows of GE?

Consider the General Electrics 10-K report for 2018. In the statement of cash flows they report 22,136 million of cash gains attributed to (apparently positive) goodwill impairment in the value of ...
0
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1answer
111 views

How many days into the process of a home equity loan application can I cancel the loan?

We are considering taking out a home equity loan for construction before our permit application is approved. It's almost guaranteed at this point but there is always chance it may not be approved. ...
2
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1answer
94 views

Equity vs Stock options?

I am a co-founder of a startup in the UK, the other co-founder wants to give me options instead of % equity because he believes when I eventually exit I will pay less tax and the company will too and ...
1
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3answers
158 views

Start-up co-founder Equity vs Salary

What is the best option? I have been asked to work in a high position as co-founder of a startup for 5% equity and $40k salary - this requires over 40 hours of work(hard grind) etc as any position ...
1
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1answer
229 views

How to interpret equity

I understand Equity to be "Net Worth", as calculated by Assets - Liabilities. I also understand the "Expanded Fundamental Accounting Equation" to be Assets + Expenses = Liabilities + Equity + Income ...
1
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2answers
116 views

Change in equity in a company

I'm very new to being a shareholder in a business and know nothing of the financial side because I am just a shareholder and not allowed to view the accounts etc. Long story short my % in the company (...
0
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1answer
273 views

How is the “Hurdle Rate” of the Hedge Fund determined?

I understand that "High Water Mark" is the highest NAV value that the Hedge Fund has ever reached, and therefore, the threshold NAV value of the Hedge Fund in question needed in order for the Hedge ...
0
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2answers
95 views

Splitting home equity with family, both family members on the loan, one brought in more down

In CA, how is it approached when 2 parties enter a loan to purchase a home then either want to sell and split ways or sell and move together. The issue: Party A brought 35% equity into the new loan, ...
2
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2answers
1k views

should I pay off 401k loan while the market is crashing?

I have an outstanding 401k loan for 33k at 5.5%. I wanted to pay it off so not to lose out on the investment opportunity. HOWEVER, the market is crashing and my last quarter 2018 401k statement ...
0
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3answers
123 views

Cross listing question with example

I would like to ask how it is possible that the company traded on two different exchanges has a totally different stock price. For example: Avast Plc (AVST.L) on London Exchange and Avast Plc (AVST....
15
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5answers
5k views

What does “Home Equity” do for me?

My wife and I are considering buying a home soon - some of the major reasons are personal, such as being able to perform repairs and updates to the property, and having the security and peace of mind ...
3
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1answer
204 views

What is the meaning of ^ symbol for SPX

I've seen symbols SPX and ^SPX, is there any significance for the symbol "^"?
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2answers
2k views

What does it mean to take equity and get a board seat?

In this article from Forbes: 500 Startups recently took in equity from Abu Dhabi Financial Group, giving the firm one of its only two board seats. What exactly does it mean to take in equity from ...
3
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1answer
147 views

What motivates Revlon's negative sharedholder's equity?

I am looking at Revlon's 10K and see stockholder's equity is negative.What motivates Revlon's negative stockholder equity? Why does it make sense for them to operate like this?
1
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2answers
167 views

When should one book profit in investing? [closed]

I would like to know if there is any theory/strategy behind booking profits when it comes to investing? Many times I have observed the stocks rallied 20-40% in the span of 2-4 months. Since I am ...
1
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3answers
110 views

What are some strategies for profitable buying of naked options (call / put)?

I prefer naked options of the index and stocks for obvious reasons. I would like to know some strategies to remain profitable with it. Note: I choose first out the money (strike price) option ...
0
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1answer
129 views

What is the value of these phantom units?

The wording of this paragraph is not clear to me. Does the value of the Phantom Units equate to 0.25% of the FMV, or do they equate to 0.25% of 10% of full FMV? The number of Phantom Units granted ...
2
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1answer
125 views

Need help negotiating a salary agreement with my boss [closed]

I'm a college student who is interning at a startup company. My job as an intern is to help redesign and launch an app, so that it runs on Android as well as iOS. When I signed up for the job I was ...