Questions tagged [equity]

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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 ...
2
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4answers
420 views

value of guaranteeing a business loan

I am a co-founder in a small business that has a number of investors. We are looking at doing an expansion that includes an capital raise and a SBA loan. The loan is roughly 5 times larger than the ...
0
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2answers
128 views

Is equity research from large banks reliable?

I have access to some deep financial analysis from a large bank, on equity. Since I know nothing in this field, but I'd still like to invest my money, I was about to follow their different advices on ...
0
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2answers
60 views

Find the tick increment value of an equity

Is there any resource containing the tick increment values of NASDAQ/NYSE equities (.0001, .01, .05), or way to programmatically determine it (rule or formula) ?
1
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2answers
84 views

Equity - date of offer, or date of joining?

I made major contributions to a startup and am being offered equity - 11% of total stock. I have been at the company for 2.5 years, and am being offered equity with a 4 year vest, starting 1.5 years ...
3
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2answers
579 views

How do I determine ownership split on a franchise model?

I was recently approached by a friend (who I consider highly competent) who is looking for financing to open up a franchise. Lets assume the opportunity generally makes sense. My question is: is there ...
0
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1answer
55 views

P/E multiples for privately held companies?

Is there any rule of thumb on the valuation of privately held (tech) companies? The long held "average" I have always seen for publicly traded companies is a P/E of 15 (with tech having historically ...
1
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3answers
454 views

Sell a domain name with equity contracts?

I have a few domain names I want to sell. Because some of them have an extremely high potential to earn the buyer big money when turned into a prosperous, profitable business, I've thought about ...
4
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2answers
535 views

GNUCash: How to count up equity?

I'm new to getting my finances in order, and I've decided to use GNUCash to track my spending and general financial health. I'm reading the manual and trying to take control! My trouble and ...
0
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1answer
167 views

Selling shares after company does IPO

Let's say a co-founder who worked (but no longer does) for a company prior to it going public still owns 1% (100,000 shares of 10,000,000 total) of the company. If the company does an IPO and offers ...
1
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1answer
444 views

How is initial stock price (IPO) of a stock determined

Stock price = Company value / Amount of stocks Who determines company value at IPO? As I understand It is determined by the owner? Or external experts?
1
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1answer
149 views

If I have equity in a company, can I receive passive income from it?

I'm about to receive equity in a company. Let's say I get 10% ownership. Does that mean that if the company makes $100 in profit every month, they have to give me $10?
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2answers
319 views

Should I invest or repay my debts?

I work in an IT firm company with an average 10% annual hike. Currently I save around 35,000 rupees per month. My family has a debt of 19,00,000 rupees. For the next 5 years I do not have any major ...
2
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3answers
852 views

When the market crashes, should I sell bonds and buy equities for the inevitable recovery? [closed]

I'm told that for my age, I should have about 1/3 of my portfolio in bonds and 2/3 in equities. Suppose I implement that with this portfolio: 100k of SPY 100k of IWM 100k of TLT Now suppose that ...
5
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1answer
217 views

Is the risk premium with insurance higher or lower than investments?

Insurance of any kind is always going to have a lower expected value than self-insuring. If there's a 10% chance of a loss of ₹100 occurring, insurance companies will charge more than ₹10, to cover ...
1
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2answers
94 views

Where to learn about Trusts and alike?

Sadly I have already gone down the Computer Science route for a degree, however I would like to learn more about Trusts, Funds, Equities etc... for a future career or for personal investments. I have ...
1
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1answer
119 views

Should a SIP as spread out as possible, or minimize time spent by money in savings accounts?

In the context of India, where money in savings accounts gets 4% interest (tax free for me) per annum, and SIP frequency doesnt affect my transaction costs in any way I'm trying to understand, which ...
0
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1answer
66 views

Reinvesting earnings increases the book value of equity?

I'm reading this text about elementary concepts in finance. It keeps repeating an example where a company reinvests part of its profits (earnings), and claims that this increases the book value of ...
-1
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3answers
317 views

Can I make money daytrading?

I opened an account with an online broker and started trading, and I nearly immediately doubled my portfolio. It seems to good to be true. I started with 3000 dollars in May and today the value is ...
3
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4answers
114 views

When does it make sense for the money paid for equity to go to the corporation?

Consider this scenario: While incorporating BigCo, Jack specifies that the number of founding shares is one million. Jack releases a product and sells it under BigCo. The product doesn't bring enough ...
0
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4answers
106 views

Investments and Equity

First, I apologize if this has been asked/answered before. Was not really sure how to search for the answer so I'm asking it here. To me, it has always seemed like a business is a thing. A thing with ...
0
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1answer
257 views

High risk investment [closed]

I have a spare £500 I do not mind losing too much. But, I do not just want to throw it away. I have found high risk investments like this one from JP Morgan Chase, and over the past few years all ...
0
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2answers
292 views

Corporate Finance [closed]

Can someone please help me in answering this question...A firm must externally raise $25 million for a new project. The flotation costs for selling debt and equity are 4 percent and 12 percent, ...
-1
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1answer
248 views

What causes a stock to drop in price?

sorry for some minor grammar issues its late and I'm trying to get as much information for a class of mine. So what exactly is making the price of a stock to go down even though as an example through ...
0
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1answer
219 views

Why Demat/Stock Market Brokers don't support Credit Card Payin

Why does Demat Account (Stock Brokers) don't support Pay-in to our Demat account directly from the Credit Cards? I am living in India, and so far I haven't come across any company which supports this....
8
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1answer
160 views

Do ETF owners buy and liquidate units from the market when gap between market value and value of underlying shares is large?

Due to various reasons, an ETF, even an index ETF might trade at a value lower that the value of its underlying securities. In such a situation, can the company managing the ETF actually buy from the ...
1
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1answer
408 views

What are “equity assets”?

The definition of equity and the definition of asset are explained in many posts and across the Internet. However, it doesn’t seem possible to me to derive the meaning of "equity assets" from them. ...
0
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1answer
2k views

What for is Equity account 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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1answer
66 views

Corporate Equity Draw vs Income

I own a small business. If I take an equity draw from from the company, as opposed to a dividend or cut of the profit, do I have to declare what I receive from the equity draw as income on my ...
0
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2answers
170 views

Using simple moving average in Equity

I have read about simple moving average. However I am still not able to analyse on how to use it in equity(Stocks). I have read about many SMA, 5 day SMA, 10 day SMA and 200 day SMA. However want ...
2
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2answers
104 views

What are some of the key identifiers/characters of an undervalued stock?

How do you identify an undervalued stock? PE? EPS? Book Value?
0
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1answer
311 views

Raising Funds: What happens when you issue new shares by adding authorized capital?

Suppose, I have a company Authorized capital - 100,000 Indian Rupees. Divided into 100 shares - 1000 Indian Rupees each. 2 Directors Totally. Director A holds 75 Shares and Director B holds 25 ...
11
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3answers
37k views

What is the difference between equity and assets?

I am (going to be) using GNU Cash, which uses the double-entry method; I use it for personal finance. Reading various tutorials for GNU cash, it lists 5 types of accounts: income, expense, assets, ...
0
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1answer
215 views

3% Equity options in software company, entitles me to revenue share?

We are a software company and have a partnership with another software company that gives us components to implement within our software and now they want to buy the intellectual property from us, ...
-1
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1answer
105 views

How does a person with a large equity in a company hedge his risk

How people like Bill Gates , who has the bulk of their wealth tied up in MSFT shares, hedge their downside risk in case the share price tanks? If he were to buy put options like the rest of us, it ...
4
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1answer
1k views

Calculating equity split in selling a property

Purchased a property with another person in 1998. We remained equitable partners until April, 2009 when the other party stopped paying their share of the mortgage, condo fees, property tax, upkeep. I ...