Equity investment

Equity investment,

Definition of Equity investment:

  1. Money that is invested in a firm by its owner(s) or holder(s) of common stock (ordinary shares) but which is not returned in the normal course of the business. Investors recover it only when they sell their shareholdings to other investors, or when the assets of the firm are liquidated and proceeds distributed among them after satisfying the firms obligations. Also called equity contribution.

How to use Equity investment in a sentence?

  1. The angel investors equity investment in Facebook initially was worth several thousand dollars however when Facebook went public the equity investment tripled in value.
  2. The equity investment by the principals should be distinguished from their roles as employees of the company and rewarded only based upon the performance of the entity.
  3. The equity investment was made to engage in a meaningful way to contribute to an organization we wholly believe in.

Meaning of Equity investment & Equity investment Definition