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NO HANDWRITTEN ANSWERS PLEASE Describe equity capital and the relationship to investors.

NO HANDWRITTEN ANSWERS PLEASE

Describe equity capital and the relationship to investors.

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Answer #1

Equity capital represents the risk capital which is being staked by the owners of the company in form of common stock (or ordinary shares). The investors are directly attached with the common stock both in the primary issue of the share capital and also in secondary market where primarily issued shares are being traded and shares exchange hands from one investor to another investor. The share holding at a point of time shows the investors of the company.

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