Where to find equity on financial statements

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If you need income tax advice please contact an accountant in your area. Here are some examples:. Equity is what you get when you subtract liabilities from assets. Stock is a traded equity. Equity financing is a method of raising capital for a business through investor s. In exchange for money, the business gives up some of its ownership, typically a percentage of shares.

The investor is taking a risk, because the company does not pay back his investment. Rather, the investor is now entitled to more of the profits because he now owns more of the company.