GENERAL KNOWLEDGE

Detailed explanation-1: -Trading on equity increases the return on equity shares with a change in the capital structure of a company.

Detailed explanation-2: -Equity Capital Markets (ECM) refers to a broad network of financial institutions, channels, and markets that together assist companies to raise capital. Equity capital is raised by issuing shares in the company, publicly or privately, and is used to fund the expansion of the business.

Detailed explanation-3: -Equity or shares are a unit of ownership in a company, and equity capital is raised by issuing shares to shareholders. It is also referred to as share capital. Shareholders are the owners of a business, and bring in capital, take risks and directly or indirectly run the business.

Detailed explanation-4: -Equity represents the total amount of money a business owner or shareholder would receive if they liquidated all their assets and paid off the company’s debt. Capital refers only to a company’s financial assets that are available to spend.