Questions tagged [equity]
The equity tag has no usage guidance.
103
questions
0
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0answers
71 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 ...
15
votes
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"/...
0
votes
1answer
65 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
votes
0answers
43 views
Equity cannot be redeemed at the option of the holder [closed]
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 ...
1
vote
2answers
114 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
votes
2answers
126 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
vote
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
vote
1answer
44 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)....
8
votes
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 is ...
0
votes
1answer
111 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 ...
0
votes
3answers
91 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 ...
0
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0answers
24 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
votes
1answer
281 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.
5
votes
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 ...
0
votes
2answers
84 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 ...
0
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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 ...
0
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0answers
26 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
votes
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 ...
0
votes
2answers
126 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 ...
0
votes
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
votes
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 ...
7
votes
2answers
1k 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
votes
1answer
93 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
vote
3answers
155 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
vote
1answer
223 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
vote
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
votes
1answer
261 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
votes
2answers
92 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
votes
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
votes
3answers
99 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
votes
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
votes
1answer
167 views
What is the meaning of ^ symbol for SPX
I've seen symbols SPX and ^SPX, is there any significance for the symbol "^"?
5
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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
votes
1answer
140 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
vote
2answers
166 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
vote
3answers
109 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
votes
1answer
121 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
votes
1answer
124 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 ...
16
votes
3answers
3k views
How to compute worth of my equity?
I am a newly appointed consultant to a startup. I work in another organization which forbids me to receive any salary for being a consultant. However, I am allowed to have an equity.
The startup ...
3
votes
1answer
842 views
UK Tax Return: how to compile it if I have restricted equity granted by my employer
This year I will have to compile my first tax return. I have received the equivalent of 5,000 GBP in restricted stock of the Company I work for.
I have already sold these shares and I know that I ...
0
votes
2answers
515 views
I want 100% of my currently failing startup. How should I approach this?
4 months ago I officially launched a company with my friend (big mistake I know - live and learn). We are 50/50 partners. He put in $3000 at the beginning because I spent well over a year out of work ...
2
votes
1answer
2k views
As a technical co-founder, how much equity should I be asking for? Is 20% unreasonable with a 144k salary? [closed]
I am joining a few months before VC pitches. I’m coming on board as CTO and will receive 3% equity vested over 4 years as well as 144k annual salary once the funding goes through. The requirement is ...
2
votes
1answer
366 views
I am a co-founder departing from a startup with debt, should I cover a portion of the debt on exit? [closed]
I'm a minority partner in an e-commerce startup, now departing due to personal reasons after being with the team for a couple of years.
Founders agreement has a clearly outlined 4-year vesting ...
-1
votes
1answer
1k views
How to find net income/loss of a company based on equity along with owner's investment/withdrawals? [closed]
We know that net income/loss is found by this equation:
Net income/loss = Revenues - Expenses
But what if both revenue and expense statements are unknown? I have the following information of the ...
3
votes
2answers
86 views
In what situation would dilution be pursued by non-founders
A VC seeds a Pre-Seed startup (the status label then change from Pre to Post-Seed). As I understand it, stakeholder objectives include maximizing value (100% of zero is nothing and 20% of $10M is ...
1
vote
1answer
99 views
S-Corps and owner draws: Are draws tied to equity shares?
A friend of mine is involved with an organization as an employee but also owns a 5% equity stake in the organization.
The organization is a S-corp. They want to pay 5 members an equal owner draw ...
1
vote
1answer
128 views
J1 visa and holding equity in a non-US startup
I hold equity in a start-up based in Singapore as one of its technical advisers on its board. I am not a co-founder, investor or an employee of the company. I do not receive any salary. I am an Indian ...
0
votes
4answers
201 views
Is investing this time in a startup worth it? [closed]
I have an opportunity that involves building a mobile application that basically improves a food industry process.
This application has a very good idea, but it is rather hard to implement, so the ...
2
votes
1answer
5k views
Does the pattern day trader rule apply to non-US citizens?
The Securities and Exchange Commission website says "FINRA rules define a “pattern day trader” as any customer who executes four or more “day trades” within five business days, provided that the ...
