ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The total value of the shares a company elects to sell to investors is called its issued share capital.

Detailed explanation-2: -All shares that are not preferential shares are equity shares and are also known as ordinary shares. A person who holds equity shares has the right to vote in the company’s decisions. As an equity shareholder, you are entitled to receive a claim to any profits paid by the company in the form of dividends.

Detailed explanation-3: -Market value of equity is the same as market capitalization and both are calculated by multiplying the total shares outstanding by the current price per share. Market value of equity changes throughout the trading day as the stock price fluctuates.

Detailed explanation-4: -What is Equity Value? Equity value, commonly referred to as the market value of equity or market capitalization, can be defined as the total value of the company that is attributable to equity investors. It is calculated by multiplying a company’s share price by its number of shares outstanding.

Detailed explanation-5: -Equity, typically referred to as shareholders’ equity (or owners’ equity for privately held companies), represents the amount of money that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company’s debt was paid off in the case of liquidation.