GENERAL KNOWLEDGE

Detailed explanation-1: -In finance, equity is an ownership interest in property that may be offset by debts or other liabilities. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets owned.

Detailed explanation-2: -An equity interest is an ownership interest in a business entity, from the concept of equity as ownership. Shareholders have equity interest as their purchase of shares of stock in the corporation gives them a share in the ownership of the business.

Detailed explanation-3: -Quick Summary of Ownership Interest The residual amount found by deducting all of the entity’s liabilities from all of the entity’s assets. (Also called equity interest.)

Detailed explanation-4: -The number of shares you buy relative to the total number of outstanding shares will determine your ownership interest in the company. For example, if you buy 1000 shares out of a company’s 100, 000 outstanding shares of stock, your ownership interest in the company is 1 percent.