Explain meaning & definition of terms 1. EQUITY 2. DIVIDEND 3. SHAREHOLDERS 4. INDIRECT SHAREHOLDING?

Answer 1

EQUITY -
1. Stock or any other security representing an ownership interest.
2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity".
3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.
4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.
5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.

The term's meaning depends very much on the context. In general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company.

DIVIDEND -
1. A distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield.
2. Mandatory distributions of income and realized capital gains made to mutual fund investors.
3. Dividends may be in the form of cash, stock or property. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make up for this.
4. High-growth companies rarely offer dividends because all of their profits are reinvested to help sustain higher-than-average growth.
5. Mutual funds pay out interest and dividend income received from their portfolio holdings as dividends to fund shareholders. In addition, realized capital gains from the portfolio's trading activities are generally paid out (capital gains distribution) as a year-end dividend.

SHAREHOLDERS -
Any person, company, or other institution that owns at least 1 share in a company. A shareholder may also be referred to as a stockholder.
Shareholders are the owners of a company. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly.

INDIRECT SHAREHOLDING -
Shares which are held by a person in his or her name, but are really owned on behalf of someone else (who is also known as the beneficial owner). That someone else is said to be an indirect shareholder.

An example might be a person holding shares on behalf of his or her spouse.

Answer 2

Equity Dividend Definition