Equity Investment
/ˈɛkwɪti ɪnˈvɛstmənt/
Definitions
- (n.) The acquisition of ownership interest in a company or asset, typically through the purchase of shares or stock, entitling the investor to a proportional share of profits and control rights.
The startup secured significant equity investment to fund its expansion.
- (n.) A form of financing that reflects ownership and residual claim in a business, as opposed to debt financing which requires repayment.
Equity investment is preferred by entrepreneurs who do not want to incur debt.
Forms
- equity investment
- equity investments
Related terms
See also
Commentary
Equity investment implies both financial stake and participatory rights; legal agreements often specify shareholder rights, dividend policies, and exit options.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.