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Home > QFINANCE Dictionary > Definition of equity capital

Definition of

equity capital

Stockholding & Investments

stock owned by stockholders the part of the nominal value of the stock owned by the stockholders of a company.

Related definitions of "equity capital"

Recommended Further Reading (Term count)
  • Optimizing the Capital Structure: Finding the Right Balance between Debt and Equity
    by Meziane Lasfer
    There are three financing methods that companies can use: debt, equity, and hybrid securities. This categorization is based on the main characteristics of the securities.Debt FinancingDebt financing ranges from simple bank debt to commercial paper and corporate bonds. It is a contractual arrangement between a company and an investor, whereby the company pays a predetermined claim (or interest) that is not a function of its operating performance,...
  • Understanding Equity Capital in Small and Medium-Sized Enterprises
    by Siri Terjesen
    Entrepreneurs may require both debt and equity financing, and often start their firms by financing growth through equity. Equity capital is money invested in the venture with no legal obligation on the entrepreneur to repay the principal amount or to pay interest on it; however, it requires sharing the ownership and profits with the funding source, and possibly also paying dividends to equity investors.After value has been built, entrepreneurs...
  • The Role of Institutional Investors in Corporate Financing
    by Hao Jiang
    Institutional investors have become increasingly important in global capital markets. As of the end of December 2007, total assets under management by major global institutional investors reached US$81.90 trillion. In particular, mutual funds, pension funds, and insurance companies managed US$26.2, 28.2, and 19.9 trillion of assets, respectively, while assets managed by nontraditional managers such as hedge funds, sovereign funds, and private...
  • Mixflation
    by Giles Keating
    Previous eras—viewed through the simplifying lens of history—seem often to fall into periods of inflation and deflation: the great falling-price boom of the 1880s; The deflationary slump of the 1930s; the inflationary 1970s. But modern times are more mixed. Over much of the last 10 years, manufactured goods prices have fallen while commodity prices soared. During 2008, this bifurcation seemed to briefly give way to a more generalized inflation,...

Definitions of ’equity capital’ and meaning of ’equity capital’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’equity capital’ and other financial terms with our online QFINANCE Financial Dictionary.

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