Negative equity is when your property becomes worth less than the remaining value of your mortgage. To be in negative equity, the value of your house must fall below the amount you still owe on your mortgage. Equity is the value of your property that you own outright.
You may be able to arrange a negative equity trade-in. You also can negotiate a trade-in deal that rolls over the negative equity. Trading in a car with negative equity can be difficult, but with a little bit of research, you can find a deal that works well for you.
Tax advisors are likely aware that a partner's basis in the partnership interest can never be negative. However, a partner's capital account can be negative. This generally happens when the partnership allocates losses or receives a distribution funded by debt incurred by the partnership.
If total liabilities exceed total assets, the company will have negative shareholders' equity. A negative balance in shareholders' equity is generally a red flag for investors to dig deeper into the company's financials to assess the risk of holding or purchasing the stock.
Negative brand equity occurs when a brand's associations and brand experience become unfavorable among customers. This can stem from various factors, including product or service failures, unethical business practices, poor customer experience, outdated brand positioning, or negative publicity crises.
What Happens If Return on Equity Is Negative? If a company's ROE is negative, it means that there was negative net income for the period in question (i.e., a loss). This implies that shareholders are losing on their investment in the company.