The equity capital
Example: Equity capital represents funds raised through issuing company shares
Definition
"Equity capital" refers to funds raised by a company through the issuance of shares, representing ownership interest held by shareholders in the company. It is a critical source of long-term financing used to support business growth, operations, and investment.
Etymology
The term "equity capital" combines 'equity,' originating from the Latin 'aequitas,' meaning fairness or justice, with 'capital,' derived from the Latin 'capitale,' meaning wealth or stock. Did you know? The concept reflects the balance between ownership rights and financial contribution within a company.
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"The equity capital" appears in the Vocaplus list "English - Finance - (A1-C2) - set 1", containing 150 commonly used words.
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