Questions tagged [equity]

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2answers
52 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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2answers
114 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 (...
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1answer
120 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 ...
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2answers
286 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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1answer
204 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 ...
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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 ...
2
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1answer
86 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 ...
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1answer
109 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. ...
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3answers
127 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 ...
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3answers
49 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....
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2answers
1k views

Selling my house for what is owed to keep from foreclosure but it's worth more. Who gets the extra money?

I am selling my house to a friend (for what I owe on the mortgage) which is $107k because I am behind on my payments and don't want to go through foreclosure, but it's worth $155k who gets the extra ...
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1answer
126 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 ...
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2answers
89 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, ...
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2answers
539 views

When and why is it smarter to lose equity over taking on a royalty?

I watch Shark Tank and very often find that people, when faced with either exchanging equity for capital, or keeping their equity and paying a royalty on product sales, very often (almost always) ...
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2answers
461 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 ...
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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 ...
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1answer
130 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 ...
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1answer
128 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?
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2answers
112 views

Precedent and models for 100% equity available via initial offering?

In consideration of the most ethical distribution of shares for a startup business (via a public, initial investment event ie- IPO, ICO, or 'crowd-equity-fundraiser') the following occurred to me. ...
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2answers
74 views

Borrowing share with a covered call for short?

I was wondering if I could increase the premium from my long term hold by providing them to my broker as a short sale stocks? My main question is that are there any implication on the fact that I ...
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3answers
103 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 ...
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2answers
163 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 ...
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1answer
93 views

What options do I have when trading in lease with equity?

We leased a 2014 Honda Odyssey Touring-Elite in the U.S., and will be maturing our lease with right at the agreed mileage (36,000). We signed our lease with an estimated residual value of $23,000 -- ...
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1answer
99 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 ...
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1answer
123 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 ...
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1answer
253 views

How do I calculate Return on Equity using moneycontrol data?

I am just starting with the stock market and I find the terms in books/tutorials not exactly matching with the balance sheet values. I am trying to calculate Return on equity= Net Income/Avg ...
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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 ...
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1answer
141 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 ...
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2answers
475 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
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1answer
1k 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
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1answer
314 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 ...
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1answer
112 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 ...
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1answer
705 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 ...
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2answers
76 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 ...
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1answer
68 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 ...
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4answers
196 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
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1answer
3k 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 ...
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0answers
40 views

Meaning of negative stockholder equity [duplicate]

In McDonald's 2016 annual report Balance Sheet, it shows Total Liabilities is greater than Total Assets. So it's Total Stockholder's Equity appears to be negative, with these fields reported as ...
1
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1answer
338 views

Canada startup employee equity taxes for stock taken in lieu of a salary?

I am an early employee at a startup, and I took a large equity stake in-lieu of salary. I expect that Canada Revenue Agency taxes this as income when the shares are sold. So in the year the company ...
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1answer
54 views

Home equity split when one partner is not on the deed

2 people buy a home. Both are on the mortgage but only one is on the deed. 5 years later the house is refinanced and now both are on the deed and mortgage. One year later one walks away and for the ...
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4answers
512 views

which types of investments should be choosen for 401k at early 20's?

I am choosing my 401(k) investment options from my company. I am seeing alot of recommendations in stack exchange that at a young age, one should allocate money towards stocks. However in the 401(k) ...
0
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1answer
143 views

Where to find stock stochastic oscillator? [closed]

Any someone recommend a good site to find reliable stochastic oscillator graphs? I have looked up online and couldn't find any good reliable source. Stochastic Oscillator can be very useful to find ...
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4answers
204 views

How to acquire assets without buying them? [closed]

A friend named Bob told me that he knows a guy who owns a shopping mall. I asked him how his friend owns this shopping mall, but he doesn't know how. How does one just own a shopping mall? I've been ...
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2answers
95 views

Can commercial banks become holders of other companies?

For example, is it possible for banks like Bank of America to become a shareholder of another commercial company, say Facebook.
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1answer
22k views

Do companies only pay dividends if they are in profit?

My understanding of dividends is that the company pays each shareholder a fixed amount of money per share they own. I can see how this would work if the company is in profit, because the company can ...
2
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1answer
275 views

Borrow money to invest in a business venture with equity?

Is it generally considered a financially-sound thing to do for one to borrow money to invest in a business venture, which may not be their own? For example, Jane borrows $50K to put in to a startup ...
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0answers
28 views

Tracking Equity Portfolio on Morningstar

I am tracking my equity portfoilio using morningstar. However, roughly once a month my platform sells of some of my holdings to pay for platform fees. How can I log this information into morningstar ...
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2answers
729 views

What are “trailing 12-month total returns”?

In a blog post about momentum strategy, I have read the sentence At the end of each month, compare the trailing 12-month total returns of U.S. and foreign stock markets. What exactly are "...
2
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1answer
53 views

Is income made from purchasing equity in a partnership tax-deductible?

I own a business incorporated as an LLC in the US. I'm working out a partnership deal in our operating agreement which allows selected individuals to invest into the partnership (become members of ...