Map of Anshun on When we speak of equity most people think of homes. Without a doubt, many who own a home may have a good percentage of their total net worth in that property. The equity in the home is the difference between the fair market value of the property and the amount owed on the mortgage (the liability). The equity is built up not only by payments to principal of the mortgage, but by appreciation as well; how much the price or worth of a home increases over the years The concept of corporate equity is quite similar, though it has scores of more complicated components. First, there is ownership interest in a corporation, which is in the form of capital stockboth common and preferred. Shareholders holding common stock receive voting rights and dividends in the case of payouts, but end up at the bottom of the hierarchy for the receipt of corporate assets in the case of liquidation. The other type of capital stock is preferred stock, and preferred stockholders are exactly that: they may receive identifiable dividends before any common shareholders receive them, and in the event of liquidation, preferred shareholders take precedence over common stockholders. Map of Anshun 2016.
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