Definition Of Equity Purchase

Equity is measured for accounting purposes by subtracting liabilities from the value of an asset.

Definition of equity purchase. Equity purchase price means the number of paired shares with a value as determined pursuant to the stock agreement equal to one million six hundred fifty five thousand one hundred dollars 1 655 100 00 provided however the equity purchase price shall be reduced to zero dollars 0 00 if the scheduled closing date does not occur prior to july 15 1998 to be delivered in accordance with the. When an equity sale occurs the company remains exactly the same with only the ownership structure changing hands between the seller and the buyer. Private equity makes extensive use of debt financing to purchase companies in use of leverage hence the earlier name for private equity operations. Assets liabilities equity.

An equity sale refers to the sale of the common shares of a company instead of only the assets. Equity can apply to a single asset such as a car or house or to an entire business. Meaning pronunciation translations and examples. Equity definition the quality of being fair or impartial.

For example if someone owns a car worth 9 000 and owes 3 000 on the loan used to buy the car then the difference of 6 000 is equity. The purchase price represents the total enterprise value ev of a company including the value of its equity and debt. The equity of solomon. Generally speaking equity is the value of an asset less the amount of all liabilities on that asset.

Equity purchase price and payment thereofthe purchase price for the purchased equity equity purchase price shall be cny 1 or the lowest price permitted by the then prc laws or the competent governmental authority whichever lower unless the prc laws or the competent governmental authority requires evaluation thereof when party a or. It can be represented with the accounting equation.