Equity represents form of fractional possession in business venture. Total equity capital is divided into equal units of small denominations, each called a share/equity.

For example, in a company let us assume the total equity capital of Rs. 5,00,00,000 is divided into 50,00,000 units of Rs 10 each is called a share.

The equity shareholders are the owners of the company and have the voting rights. The term 'equity' is most interchanged with the term 'share'.


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