what is equity

Answer Posted / sachin a chaudhari

Total equity capital of a company is divided into equal units of small denominations or part, each called a share.

 It is a stock or any other security representing an ownership interest.

 It proves the ownership interest of stock holders in a company.
For example:-
In a company the total equity capital of Rs 2, 00, 00,000 is divided into 20, 00,000 units Of Rs 10 each. Each such unit of Rs 10 is called a Share. Thus, the company then is said to have 20, 00,000 equity shares of Rs 10 each. The holders of such shares are members of the company and have voting rights.

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