0
An equity interest is a proportion of ownership, typically via investment in a business. Stocks are also known as equities. Also, there is an accounting concept called owner's equity. One person might own 90% of a business, and the other 10%.
Note that bonds represent cooperation debt, while stocks represent ownership or equity interest.
Still curious? Ask our experts.
Chat with our AI personalities
Steve
Coach
DevinAdd your answer:
Earn +20 pts
What is earning interest on interest called?
Compound interest
How is interest different from compound interest?
Simple interest is interest paid on the original principle only, Compound interest is the interest earned not only on the original principal, but also on all interests earned previously.
When the amount earned on a deposit has become part of the principal at the end of a specified time period the concept is called Answer discount interest compound interest primary interest?
If the interest is reinvested and so itself gains interest (in the next interest period) it is compound interest.
What makes the simple interest simple?
It is interest on simply the original capital. After the first period, compound interest involves interest on the interest earned in previous periods and soit not simple.
What is the calculation for a simple compound interest rate?
There is simple interest and there is compound interest but this question is the first that I have heard of a simple compound interest.
