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Stock market investors are primarily concerned with the share price of the companies of which they are fractional owners. The two main drivers of share price are a company's earnings and its owner's equity. Generally speaking, the more profits a company generates, the more valuable its owner's equity, which in turn drives stock prices higher. One measure of profitability is net income, also referred to as earnings after taxes, or EAT.
People use the term "free and clear" to refer to property that they own outright. While you can use the phrase in reference to ownership of any kind of property, people tend to use the term in connection with real estate. If no liens exist on your home, then you have 100 percent equity and therefore own it free and clear, meaning you have a clear title and that no one else has a claim on your home.
An investment tax credit is an incentive offered under federal or state tax rules to individuals or corporations that invest in a project or business deemed worthy of favorable tax treatment. Since the early 1960s, when Congress passed the first investment tax credits, several different versions of this incentive have been offered to taxpayers.
An equity share is an incremental portion of ownership in a company. Commonly referred to as shares of stock, the more equity shares of a given company an investor holds, the greater the percentage of the overall company he owns. The term equity shares refers to a company's ordinary shares of stock, which differ from preferred shares of stock by the inclusion of voting rights on major executive decisions.
"Market value of equity" (MVE) is the total value of the outstanding shares of an exchange-listed company. If a company has one million shares outstanding, and the value of each share is $1, then the MVE is $1 million.
To have free and clear equity in an investment means that the borrower owns the asset without any loans or liens attached to it. In other words, if the property was sold free and clear, the owner would receive 100 percent of the proceeds from the sale and not have to pay off any debt at closing.
A statement of owner's equity is one of the four main financial statements that quantify the financial position of an organization's activities at a particular point in time. Although it may also be commonly known as a statement of shareholder's equity, the purpose is identical. The statement of owner's equity details the changes to the owner's equity account during the accounting period as the organization issues dividend payments and retains money for use within the organization for investment. To fully define the statement of owner's equity, you have to reconcile the previous equity balance with withdrawals (or dividend payments), investments…
A homeowner's equity is the percentage of the property that he owns without any debts or liens placed upon it. In other words, it is the value of the home minus any debt.
Owner's equity is defined at the residual that is left after liabilities have been subtracted from total assets. It often includes items such as common stock, preferred stock and treasury stock. Show changes in owner's equity with a statement of change using tips from a certified public accountant in this free video on accounting.
