A 20% equity stake means you own 20% of a company. This means you have a right to 20% of the company's profits and assets. If the company were to be sold, you would be entitled to 20% of the proceeds.
Equity shares represent ownership in a company, granting voting rights and profit sharing. They offer high risk but the potential for significant returns and long-term financing benefits. Equity share capital reflects funds raised through shares, providing ownership rights and profit shares.
Equity Shares = Equity Capital / Face Value per Share For example, if a company generates ₹5,00,000 from shares with a face value of ₹10, the calculation is 5,00,000/10, yielding 50,000 equity shares. This metric signifies the total ownership units issued by the company.
Total equity is the value left in the company after subtracting total liabilities from total assets. The formula to calculate total equity is Equity = Assets - Liabilities.
Shareholders Equity = Total Assets – Total Liabilities.