Equity (finance) § Valuation

Equity is a financial instrument that allows a company to receive future payments from its customers in exchange for ownership of the business.

The value of equity is based on the assumption that the company will be able to generate profits over time.

A company’s equity can be thought of as its ownership stake in the company, minus any liabilities it may have.

Equity can be invested in a variety of different securities, including stocks, bonds, and real estate.

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