Equity Overview, How it Work, Types, Formula, Example
These shares are held in the company’s treasury and can be reissued or retired. Repurchasing shares can be a strategic move to consolidate ownership, boost earnings per share, or signal confidence in the company’s future prospects. In finance, equity is typically expressed as a market value, which may be materially higher or lower than the book value. Creditors, including banks and other lenders, examine equity to gauge a company’s financial […]
