Questions tagged [equity]

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15
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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"/...
0
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1answer
60 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 ...
2
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0answers
37 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 ...
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2answers
111 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
123 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 ...
2
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3answers
3k views

What is the Equity account for in GnuCash?

What is the purpose of Equity account in GnuCash? For example, I have income through Salary account $500, after I have expense by buying book for $5 (so in Expense:Books account is entry for $5). But ...
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
42 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
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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 is ...
0
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1answer
110 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
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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 ...
5
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2answers
284 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 ...
6
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1answer
271 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
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
25 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
21 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 ...
0
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2answers
111 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 ...
1
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2answers
115 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
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 ...
1
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1answer
221 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 ...
7
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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
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 ...
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. ...
1
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3answers
154 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 ...
0
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3answers
82 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....
3
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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
249 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
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, ...
0
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2answers
784 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) ...
2
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2answers
739 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 ...
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
155 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
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1answer
139 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?
0
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2answers
115 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. ...
1
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2answers
95 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 ...
1
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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 ...
1
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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 ...
0
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1answer
99 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 -- ...
0
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1answer
119 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
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 ...
0
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1answer
329 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 ...
16
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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 ...
3
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1answer
709 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
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2answers
513 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
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
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1answer
361 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 ...