"Where Everyone Has an MBA"
Tel: (612) 246-4616

EQUITY HOLDING Definition

EQUITY HOLDING is a holding of the nominal share capital in a company where the shareholding entitles the shareholder to a right to votes, to profits available for distribution to shareholders and to assets available for distribution on a winding up of that company. A holding of shares held as trading stock for the purpose of a trade does not constitute a participating holding.

Learn new Accounting Terms

PIPE (Private Investment in Public Equity) refers to any private placement of securities of an already-public company that is made to selected accredited investors (usually to selected institutional accredited investors) wherein investors enter into a purchase agreement committing them to purchase securities and, usually, requiring the issuer to file a resale registration statement covering the resale from time to time of the securities the investors purchased in the private placement. PIPE transactions may involve the sale of common stock, convertible preferred stock, convertible debentures, warrants, or other equity or equity-like securities of an already-public company. There are a number of common PIPE transactions, including:

• the sale of common stock at a fixed price;
• the sale of common stock at a fixed price, together with fixed price warrants;
• the sale of common stock at a fixed price, together with resettable or variable priced warrants;
• the sale of common stock at a variable price;
• the sale of convertible preferred stock or convertible debt; and
• a venture-style private placement for an already-public company.

ECONOMIC EXPOSURE, in foreign exchange, is the extent to which the value of the firm, as measured by the present value of all expected future cash flows, will change when exchange rates change.

Suggest a Term