When you have equity in a company, it means you:
A) own part of the company and share in its profits.
B) have diversified the company's risk.
C) have diversified your risk by investing with the company.
D) own a portion of the debt obligations of the company.

Question

Quizplus · Accepted Answer

Having equity in a company means that you own a share of that company and are entitled to a portion of its profits. This is different from having debt obligations, as equity holders do not have a specified repayment schedule and their returns are based on the company's success. Diversifying risk can be achieved through investing in multiple companies or asset classes, but it is not directly related to equity ownership.

When You Have Equity in a Company, It Means You