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What are equity related securities?

Updated: 9/20/2023
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Q: What are equity related securities?
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What is credit margin?

The amount of equity required for an investment in securities purchased on credit.


What industry is most closely related to the Northern Securities Case?

The railroad industry is the most closely related to the Northern Securities case.


What are the equity related finance project topics?

equity risk premium


What is marging money?

The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account.


The difference between debt securities and equity securities?

In a nutshell, both debt and equity securities are financial instruments that assist companies to finance their operations. Debt securities are legal obligations to repay borrowed funds at a specified maturity date and provide interim interest payments as specified in the agreements. The examples include commercial papers, bonds, loans, debentures, and T-bills among others. The benefits of issuing debt securities of companies are that the interests paid are tax-deductible: i.e., they are expensed so that companies pay less tax; they protect companies from losing control over operations; and also help discipline management. On the other hand, debt securities increase the probability of bankruptcy and expected bankruptcy costs; reduce financial flexibilities due to negative covenants among others. Equity securities represent an ownership stake in a company, such as common and preferred shares. Shareholders are entitled to dividends from post-tax earnings which are taxed at a lower rate than interest payments received for bonds. However they receive dividends only after all creditors have been paid.

Related questions

Treatment of other-than-temporary impairment for equity investment versus equity securities?

It depends whether IFRS or GAAP


What are Global equity and bond funds?

Global equity and bond funds maintain a portfolio of securities and debt instruments traded worldwide


What has the author Lalith P Samarakoon written?

Lalith P. Samarakoon has written: 'Equity Securities' 'Equity Markets: Theory and Practice'


What is credit margin?

The amount of equity required for an investment in securities purchased on credit.


What is most related to the Northern Securities Case?

The railroad industry is the most closely related to the Northern Securities case.


What is most closely related to the Northern Securities Case?

The railroad industry is the most closely related to the Northern Securities case.


What most closely related to the Northern Securities case?

The railroad industry is the most closely related to the Northern Securities case.


What are the objectives of icici prudential focused bluechip equity fund?

ICICI Prudential Focused Bluechip Equity Fund, an open-ended equity scheme, aims to maximize long-term total returns, from a focused and optimally diversified portfolio that is invested in equity and equity related securities of about 20 companies belonging to the large cap domain. This strategy has the potential to generate positive returns from being overweight on certain high conviction stock picks.


What are trading securities?

"Trading securities are debt and equity securities that the company intends to actively manange and trade for profit." (Chiappetta, Larson, Wild, Fundamental Accounting Principles, 18th Ed., McGraw-Hill 2007, page 589)


What is meant by NASDAQ?

It is a large sceen based equity securities trading market in the US National Association of Securities Dealers Automated Quotations...which the NASD sold in 2000 and 2001.


What industry is most closely related to the Northern Securities Case?

The railroad industry is the most closely related to the Northern Securities case.


What are the two types of financial assets created in the process of direct financing?

The two types of financial assets created in the process of direct financing are equity securities and debt securities. Equity securities represent ownership stakes in a company and include stocks or shares. Debt securities are loans made to a company and include bonds or notes, which represent the company's promise to repay the borrowed funds with interest.