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Equity

Also Known As: Shareholders’ Equity, Owners’ Equity

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The value that would be returned to a company’s shareholders if all of the assets were liquidated and all of the company's debts were paid off. Equity financing involves selling a stake in your company or project in return for a cash investment. Unlike a loan, equity finance doesn't carry a repayment obligation. Instead, investors buy shares in the company in order to make money through dividends (a share of the profits) or by eventually selling their shares.

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