answersLogoWhite

0

Positive equity refers to the situation where the value of an asset exceeds the outstanding liabilities associated with it. For example, in real estate, if a homeowner's property is worth $300,000 but they owe $200,000 on their mortgage, they have positive equity of $100,000. This indicates financial strength, as the owner has a stake in the asset that can be realized through sale or refinancing. Positive equity can also enhance borrowing capacity and financial stability.

User Avatar

AnswerBot

6mo ago

What else can I help you with?

Related Questions

How can I determine if I have equity in my home?

To determine if you have equity in your home, subtract the amount you owe on your mortgage from the current market value of your home. If the result is a positive number, you have equity in your home.


What is the process for determining the equity in a property facing foreclosure?

The process for determining the equity in a property facing foreclosure involves subtracting the amount owed on the mortgage from the property's current market value. If the result is positive, it indicates equity in the property. If the result is negative, it means the property is underwater, and there is no equity.


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 transaction type increases owners equity?

Transactions that increase owner's equity typically include revenue-generating activities, such as sales of goods or services, which contribute to net income. Additionally, investments made by the owner, such as capital contributions or additional investments in the business, also boost owner's equity. Conversely, expenses and withdrawals by the owner decrease equity. Overall, positive net income and owner investments are key drivers of increased owner's equity.


Why is brand equity important for a brand?

Brand equity is important because it represents the value and strength of a brand in the market. Strong brand equity builds customer trust, drives preference, and allows companies to charge premium prices. It leads to higher customer loyalty, easier product launches, and increased marketing effectiveness. A brand with positive equity stands out in a crowded market and often benefits from word-of-mouth and repeat purchases. It also gives businesses a competitive edge, reduces price sensitivity, and adds long-term value to the company. In essence, brand equity is not just reputation—it's a powerful asset that directly influences growth and sustainability.


What causes the increase in total shareholders equity?

The increase in total shareholders' equity can be attributed to several factors, including the retention of earnings, where a company reinvests its profits instead of distributing them as dividends. Additionally, the issuance of new shares can also contribute to an increase in equity. Positive changes in asset valuations and reductions in liabilities may further enhance shareholders' equity. Overall, these factors reflect the company's financial health and growth potential.


Difference between equity and owner's equity?

EQUITY:- Equity is the term in which liability is introducedOwner Equity :- Owner Equity is the term in which liabilty and owner capital is introduce...it is some time called Equities....


What is the relationship between brand loyalty and brand equity?

Brand loyalty and brand equity are closely connected — they actually strengthen each other. Brand loyalty means customers repeatedly choose the same brand over others because they trust it or have a positive emotional connection with it. Brand equity, on the other hand, is the overall value a brand holds in the market — based on consumer perception, recognition, and reputation. When people are loyal to a brand, it increases that brand’s perceived value, market share, and reputation — all key parts of brand equity. In simple terms: Strong brand loyalty builds brand equity, and high brand equity helps maintain customer loyalty.


What is net equity?

net new equity is given by the formula; new equity-old equity- addition to retained earnings


What is the singular possessive of equity?

The possessive form of the singular noun equity is equity's.


What are the Increases in equity from a company's sales of products or services?

Increases in equity from a company's sales of products or services primarily occur through net income, which adds to retained earnings. When a company sells products or services, the revenue generated contributes to its overall profitability. This net profit, after deducting expenses, is then retained in the business, thereby increasing shareholders' equity. Additionally, if sales contribute to positive cash flow, it can further enhance the company's financial position and equity value.


What is net new equity?

net new equity is given by the formula; new equity-old equity- addition to retained earnings