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  1. What Is
July 25, 2016updated 02 Feb 2017 4:24pm

What is equity?

How are start-ups financed?

By Vinod

In business, equity refers to an ownership share in a company.

There are two types of shares, common or preferred.

Equity also describes the value of a person or company’s assets minus its liabilities.

Equity is one of the two main ways of financing a start-up. Some start-ups choose to sell ownership in exchange for capital, whereas others opt to take out debt.

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