When you have equity in a company,it means you:
A)own part of a company and share in its profits.
B)have diversified the company's risk.
C)have diversified your risk by investing with a company.
D)None of these is true.

Question

Quizplus · Accepted Answer

When you have equity in a company, it means you own part of the company and share in its profits. This is the definition of owning equity or shares in a company. Option B is not relevant to the definition of equity, and option C is a reverse interpretation, where the company diversified their risk by having investors. Option D is incorrect because owning equity means owning a part of a company.

When You Have Equity in a Company,it Means You