Questions tagged [equity]
The equity tag has no usage guidance.
131
questions
0
votes
1answer
112 views
Why do startups prefer Stock Options over Stock Grants?
Why do startup companies and large companies alike seem to always prefer to offer their employees stock options, rather than stock grants? Stock grants seem like a way better deal for employees. Let ...
10
votes
6answers
2k views
How to structure equity buyout?
Years ago, I helped out a friend on his startup as a software engineer. Spent ~500-600 hours on it, was compensated a little under half my hourly rate + 4.5% equity in the company, because the company ...
0
votes
1answer
75 views
How to get UK company share certificates when an entrepreneur does not comply?
In January 2020, I made an investment of £7,500 being promised that I would receive the respective share certificates related to UK company.
After that, the pandemic became the excuse but the ...
2
votes
2answers
181 views
In the context of corporate profits, what does “back-half” mean?
Today, the following was reported:
Clorox shares are trading lower after the company reported Q2 results. While the company beat estimates, it said it expects back-half sales to be about flat.
What ...
1
vote
3answers
136 views
How do I calculate the equity I have in my home when overpaying on mortgage?
I am aware that when paying off a repayment mortgage the proportion of monthly payments going towards the interest is higher towards the start and eventually the proportion lowers towards the end of ...
1
vote
1answer
95 views
Assets != Equity + Liabilities
could anyone explain to me, in this balance sheet, which items are assets, which items are liability, and which items are equity?
Are funding debt and Notes issued liability?
Is redeemable convertible ...
0
votes
1answer
51 views
How equity works - is there a difference between rescaling equity and fixed-equity?
after a colleague of mine left the company, I'd like to provide him/er with an equity for the work done. I'd like this equity to be dynamic, meaning that whenever a new member or investor enters, his/...
0
votes
2answers
131 views
To the employer, is equity more or less expensive than payroll?
I work for a company that compensates employees with low base salary and a bit higher than average equity.
My question is, how much more expensive is paying an employee equity vs standard salary? How ...
0
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0answers
34 views
Equity Crowdfunding payoff
I have invested in several companies so far through equity crowdfunding rules (on sites like seedinvest and wefunder), but I'm still not totally clear on how future equity might be allocated. Does ...
0
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2answers
48 views
What to ask for to determine percent of startup I have shares in?
I work at a pre-launch tech startup and we agreed that I'd receive 2% equity. When I signed paperwork for the shares, there was nothing indicating what % I signed at, just the number of shares.
I ...
15
votes
7answers
4k views
Why would a company prevent their employees from selling their pre-IPO equity?
I have heard and read that some non-publicly traded companies prevent their employees from selling their pre-IPO equity. Why would they have such a policy?
For example, from How to Sell Private ...
1
vote
4answers
179 views
How to reinvest my gains in the equity?
My equity portfolio has been gaining a bit of traction because the economy is recovering. I am a noob investor and It has only been a few months since I first started.
The rule of thumb for most ...
3
votes
2answers
180 views
What does equity mean for me in practical terms in a job offer?
I am looking at a job offer and they are offering me the following equity package:
Equity: 14,000 stock options
Equity Breakdown: All equity goes on a 4 year vesting schedule, with a
1 year cliff. ...
2
votes
2answers
195 views
Why would voting Class A Google stock (GOOGL) be selling for less than non-voting Class C stock (GOOG)?
Currently (2020 October 30), Class A Google stock (GOOGL), which has voting rights, is selling for less than its non-voting Class C stock (GOOG).
This seems backwards.
Why would this ever be the case?
1
vote
0answers
302 views
Were the shareholders of ZTNO (Zoom Technologies Inc.) just hustled?
According to most financial sites, shares of Zoom Technologies Inc. (ZTNO) just suddenly went to zero.
Before anyone panics, I'm not referring to Zoom Video Communications Inc. (ZM), the maker of the ...
2
votes
1answer
52 views
Making equity investment of personal money to LLC
NY state here. I have a very small single member, member managed (I'm the member) LLC that has elected to be taxed as an S-corporation (this might be important).
The LLC is running a little light on ...
0
votes
1answer
48 views
liquidation preference and other loop holes when joining startups who offer equity
There are lots of startups that want to provide equity in exchange for labor rather than a salary or a combination of both. Reading online it seems there are a ton of loopholes where I may not get ...
1
vote
1answer
214 views
Difference between Stockholders' Equity and Stockholders' Equity-Parent?
What's the difference between "Stockholders' Equity" and "Stockholders' Equity - Parent"? Which should I use in calculating the return on equity?
0
votes
1answer
29 views
NASDAQ Equity Option settlement
Suppose in NASDAQ i sell APPL equity put option of week and that option became ITM then would this option will settle in cash or physical delivery of stock?
0
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1answer
172 views
Why do startups dilute their equity?
I am trying to understand why, when a startup raises funds, it dilutes its equity by issuing more shares, rather than just issuing a portion of the existing shares.
For example, let's say a startup ...
1
vote
0answers
65 views
How does a stock trade at an exchange that isn’t where it is listed? [duplicate]
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 ...
20
votes
9answers
8k 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 ...
0
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0answers
50 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 ...
0
votes
1answer
52 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-...
0
votes
1answer
55 views
stockholders equity is higher than total liabilities but the stockholders equity has “()” indicating it is negative. why is that?
Right column of balance sheet
full view of balance sheet.
1
vote
1answer
39 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
votes
2answers
51 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
votes
2answers
84 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, ...
0
votes
0answers
39 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
votes
1answer
43 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 ...
0
votes
3answers
147 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 ...
0
votes
0answers
95 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
79 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
80 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 ...
1
vote
2answers
124 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
130 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
19 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
47 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 ...
0
votes
1answer
136 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
94 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 ...
6
votes
1answer
339 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
286 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
89 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
votes
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
votes
1answer
89 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
266 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
129 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
325 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 ...
