What is private equity and how does it work?

What is private equity and how does it work?
by

1 Answer

Answer :

Private equity is the personal ownership of stocks. Equity is a form of ownership of a company and you can be involved in private equity simply by building a portfolio of stocks that you own.
by

Related questions

Is there anything nice to say about private equity funds?

Description : Is there anything nice to say about private equity funds?

Last Answer : The only ‘good’ thing to say is that – if you are in them, you can go from moderately rich to VERY rich without doing a damn thing.

Should I trust a private equity firm?

Description : Should I trust a private equity firm?

Last Answer : You can if you choose carefully. Here is a guide http://secondventure.com/How-to-Choose-a-Private-Equity-Company.asp

Which one of the following is not an objective of the introduction of Primary Dealer System ? (A) To encourage a voluntary holding of govt. securities amongst a wider investor base (B) To make Primary Dealer System an effective conduct of open market operations (C) To strengthen the private equity infrastructure (D) To strengthen the govt. securities infrastructure

Description : Which one of the following is not an objective of the introduction of Primary Dealer System ? (A) To encourage a voluntary holding of govt. securities amongst a wider investor base (B) To ... (C) To strengthen the private equity infrastructure (D) To strengthen the govt. securities infrastructure

Last Answer : Answer: To strengthen the private equity infrastructure

What is the initial minimum paid-up equity capital required for new on-tap license to set up private bank as announced by RBI? A) Rs 5 crore B) Rs 100 crore C) Rs 500 crore D) Rs 50 crore E) Rs 200 crore

Description : What is the initial minimum paid-up equity capital required for new on-tap license to set up private bank as announced by RBI? A) Rs 5 crore B) Rs 100 crore C) Rs 500 crore D) Rs 50 crore E) Rs 200 crore

Last Answer : C) Rs 500 crore Explanation: The Reserve Bank of India released norms for on-tap permits for private sector banks and said the validity of the in-principle approval issued by the RBI will be 18 months from the date of granting in-principle approval.

Which sister organization of the World Bank helps private activity in developing countries by financing projects with long-term capital in the form of equity and loans ? 1. Asian Development Bank 2. IMF 3. International Development Association 4. International Finance Corporation 5. None of these

Description : Which sister organization of the World Bank helps private activity in developing countries by financing projects with long-term capital in the form of equity and loans ? 1. Asian ... . IMF 3. International Development Association 4. International Finance Corporation 5. None of these

Last Answer : International Finance Corporation

How does a home equity loan work?

Description : How does a home equity loan work?

Last Answer : answer:Is a secured loan where you borrow against the equity in your house. This is calculated by taking the appraised market value of your home minus what you owe on the house. Say you paid $200k for your house ... at $225k. $225 - $150 = $75k in equity that you can borrow in a HEL Good Luck ! R

Gender equity or gender war?

Description : Gender equity or gender war?

Last Answer : answer:There's a very interesting book about many of these issues called The Myth Of Male Power by Dr. Warren Farrell. Make no mistake though, he is operating from a VERY biased, anti- ... of women and men, respectively, each year, but breast cancer research receives 700% more funding annually.

Explain the concept Of ‘equity’ and ‘sustainability’ as the pillars of human development. -Geography

Description : Explain the concept Of ‘equity’ and ‘sustainability’ as the pillars of human development. -Geography

Last Answer : Equity: Equity refers to making equal access to opportunities available to every body. It must be equal irrespective of their gender, race, income and in the Indian case, caste. ... generations. Each generation must ensure the availability of choices and opportunities to its future generations.

What is Equity ?

Description : What is Equity ?

Last Answer : Equity means equality.

what is fair equity percentage for small project startup participation?

Description : what is fair equity percentage for small project startup participation?

Last Answer : Need Answer

Can interest on Home Equity loan be deducted from federal taxes

Description : Can interest on Home Equity loan be deducted from federal taxes

Last Answer : The interest on most home equity loans is tax deductible. There are limitations to interest deductions for home equity loans depending on what the loan is used for. For more information about home equity loan tax deductions, see IRS Publication 936, Home Mortgage Interest Deduction .

Which is a better SIP investment option - Equity funds or Index funds ?

Description : Which is a better SIP investment option - Equity funds or Index funds ?

Last Answer : Equity fund is a part of index fund hence both have their pros and cons. Equity funds are the most popular due to the past performance of these funds. You can select both by dividing your ... than going through regular index mutual funds. You can refer Infini mf app for top performing mutual funds.

State whether drawings increase or decrease owner’s equity.

Description : State whether drawings increase or decrease owner’s equity.

Last Answer : State whether drawings increase or decrease owner’s equity.

What does equity of a tax mean?

Description : What does equity of a tax mean?

Last Answer : The tax is fairly assessed.

Why is cost of equity called cost of equity?

Description : Why is cost of equity called cost of equity?

Last Answer : Feel Free to Answer

What A financial statement that lists a company's assets liabilities and owner's equity as of a specific date is called?

Description : What A financial statement that lists a company's assets liabilities and owner's equity as of a specific date is called?

Last Answer : A Balance Sheet, also sometimes referred to as a Statement of Financial Position.

Auto Loan vs. Home Equity Loan?

Description : Auto Loan vs. Home Equity Loan?

Last Answer : Auto Loan vs. Home Equity LoanHome equity loans often have lower interest rates than autoloans and the interest may be tax deductible. Two good reasons totake a look at home equity loans to finance your automobilepurchase.

Can I get a home equity loan from a Texas bank if I live in another state?

Description : Can I get a home equity loan from a Texas bank if I live in another state?

Last Answer : You should be able to get a home equity loan if you live in another state. The most important factor is your credit rating.

What is the average interest rate on a Home Equity Loan in Texas?

Description : What is the average interest rate on a Home Equity Loan in Texas?

Last Answer : The average interest rate on a Home Equity Loan in Texas is about 8 to 10%. You can read more at www.window.state.tx.us/specialrpt/homeeqty03/ There are several different types of loans and circumastances,so a tru average is not possible. You can find rates as low as 5% and as high as 19%

What are current rates on an equity loan?

Description : What are current rates on an equity loan?

Last Answer : Most equity loans are loaning money at least at 5%. Interest rates do vary from loan to loan based on the credit worthiness of the loan.

Can you please explain the Texas law on refinancing home equity loans?

Description : Can you please explain the Texas law on refinancing home equity loans?

Last Answer : The laws are federal. You can find more info at http://www.occc.state.tx.us/pages/brochures/home_equity_lending.html

What is American Equity index 5 rated?

Description : What is American Equity index 5 rated?

Last Answer : If you are referring to American Equity Investment Life Insurance Company (and not the mortgage company) and have an Index-5 then you may be entitled to funds from a class action settlement.

Does my equity improve my chances of getting refinanced?

Description : Does my equity improve my chances of getting refinanced?

Last Answer : The more equity someone has, the better the chances of getting refinancing to go through. Confirming this with current lenders or banks would be best to get an accurate answer.

Can I use my car's title as collateral for a car equity loan?

Description : Can I use my car's title as collateral for a car equity loan?

Last Answer : When it comes to using collateral for a car equity loan using your car title is an option through certain loan providers it just depends on their qualifications and the value of your car.

Can I refinance my mortgage if I have low equity in my house?

Description : Can I refinance my mortgage if I have low equity in my house?

Last Answer : Yes it is possible to refinance your house if you have low equity. But you must have at least 20 percent equity before your refinance will be apporoved.

How is the credit line priced for a home equity line?

Description : How is the credit line priced for a home equity line?

Last Answer : The most informative online resource for information on a credit line for a home equity line is from United States government. http://www.federalreserve.gov/pubs/equity/equity_english.htm

Home Equity Lines of Credit?

Description : Home Equity Lines of Credit?

Last Answer : In addition to home equity loans, it is now possible to obtain home equity lines of credit that allow you to borrow only the amount you need at any given time, even though you have access to an ... of your home. It is even possible to apply for a home equity line of credit from online lenders.

How do you calculate the asset beta, equally weighted asset beta and cost of capital equity for 3 given firms?

Description : How do you calculate the asset beta, equally weighted asset beta and cost of capital equity for 3 given firms?

Last Answer : An equity analyst needs to estimate the beta of the restaurant business in the UK. She gathers data on three companies that own and manage pubs, bars and restaurants in the country, namely, the Restaurant Group ( ... is 1.9b GBP. Wetherspoon has an equity beta of 0.80 and is financed 30% by debt a

What is the role of individual is maintaining peace harmony and equity in nature?

Description : What is the role of individual is maintaining peace harmony and equity in nature?

Last Answer : In order to live in harmony with nature human beings must recognize and respect its the human existence has to function and sustain itself within this system. Harmony in the individual and harmony in human relationships.

Which of these government policies pursues the economic goal of equity?

Description : Which of these government policies pursues the economic goal of equity?

Last Answer : Increasing the money supply.

which is the cvv number on an equity MasterCard?

Description : which is the cvv number on an equity MasterCard?

Last Answer : the three-digit CVV number is printed on the signature panel on the back of the card immediately after the card's account number

What is the difference between an equity and an IPO?

Description : What is the difference between an equity and an IPO?

Last Answer : IPO Initial Public Offering is made by private companies to convert it into public based companies and that is the first time ever that company is selling its shares to the public whereas Equity share ... from the public, instead the company will pay the interest to the public who holds its shares.

What is the difference between commodity and equity?

Description : What is the difference between commodity and equity?

Last Answer : equity gives the person ownership rights while commodity refers to goods that can be traded. Commodity refers to a generic form of a product that is very basic and undifferentiated. Examples of a ... shares held by a shareholder represent equity as it shows ownership held in the company by other.

A company forfeited 30 equity shares of Rs. 10 each fully called-up, for non-payment of allotment money of Rs. 3 and call-money of Rs. 4 per share. If these shares are reissued at Rs. 8 per share fully paid, the amount transferable to capital reserve will be– (A) Rs. 300 (B) Rs. 60 (C) Rs. 90 (D) Rs. 30

Description : A company forfeited 30 equity shares of Rs. 10 each fully called-up, for non-payment of allotment money of Rs. 3 and call-money of Rs. 4 per share. If these shares are reissued at Rs. 8 per share fully paid, the amount ... to capital reserve will be- (A) Rs. 300 (B) Rs. 60 (C) Rs. 90 (D) Rs. 30

Last Answer : Answer: Rs. 30

Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, 10% debentures of Rs. 100 each at par and 15,000 equity shares of Rs. 10 each. How much was the flow of funds in the above transaction ? (A) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000

Description : Alfa Company Limited acquired the business of M/s Bharat Traders. The valuation of the items acquired was-building Rs. 1,20,000; machinery Rs. 80,000 and stock-in-trade Rs. 30,000. The company issued in lieu of the above items 800, ... ) Rs. 2,30,000 (B) Rs. 1,00,000 (C) Rs. 50,000 (D) Rs. 30,000

Last Answer : Answer: Rs. 30,000

On an equity share of Rs. 100, the minimum amount payable on application under the law should be– (A) Rs. 20 (B) Rs. 15 (C) Rs. 10 (D) Rs. 5

Description : On an equity share of Rs. 100, the minimum amount payable on application under the law should be– (A) Rs. 20 (B) Rs. 15 (C) Rs. 10 (D) Rs. 5

Last Answer : Answer: Rs. 5

Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Description : Bonus Shares are issued to– (A) Equity Shareholders (B) Preference Shareholders (C) Debenture Holders (D) Secured Creditors

Last Answer : Answer: Equity Shareholders

Which one of the following has replaced the Budla system in India ? (A) Rolling settlement (B) Trading in equity derivatives (C) Depository system (D) Online trading

Description : Which one of the following has replaced the Budla system in India ? (A) Rolling settlement (B) Trading in equity derivatives (C) Depository system (D) Online trading

Last Answer : Answer: Rolling settlement

Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital

Description : Which one of the following transactions changes the current ratio ? (A) Purchase of goods for cash (B) Plant acquired on account (C) Sold goods on credit (D) Debentures converted into equity capital

Last Answer : Answer: Plant acquired on account

Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ? (A) 40% (B) 50% (C) 60% (D) 75%

Description : Net profit after tax of Rs. 2,00,000 is Rs. 4,00,000. Share capital is Rs. 8,00,000 and revenue reserve is Rs. 2,00,000. What is rate of return on equity ? (A) 40% (B) 50% (C) 60% (D) 75%

Last Answer : Answer: 40%

A tax is characterized by horizontal equity if its liability is - (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Description : A tax is characterized by horizontal equity if its liability is - (1) proportional to the income of tax payers (2) similar for tax payers in similar circumstances (3) proportional to the expenditure of tax payers (4) the same for every tax payer

Last Answer : (1) proportional to the income of tax payers Explanation: The principle of equity includes both horizontal and vertical. Equity is determined by first assessing an individual's ability-to-pay. The idea of ... equity suggests it is fair for people of equal ability to pay the same amount in taxes.

A financial product which provides senior citizens with funds against their home equity is referred as _______ A. Mortgage B. Reverse Mortgage C. Repossession D. Refinance

Description : A financial product which provides senior citizens with funds against their home equity is referred as _______ A. Mortgage B. Reverse Mortgage C. Repossession D. Refinance

Last Answer : B. Reverse Mortgage Explanation: A reverse mortgage or home equity conversion mortgage (HECM) is a special type of home loan for older home owners (62 years or older) that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and home owner‘s insurance.

Which of the following is not a „Money Market Instrument‟? A. Treasury Bills B. Commercial Paper C. Certificate of Deposit D. Equity Shares

Description : Which of the following is not a „Money Market Instrument‟? A. Treasury Bills B. Commercial Paper C. Certificate of Deposit D. Equity Shares

Last Answer : D. Equity Shares Explanation: There are several money market instruments, including treasury bills, commercial paper, bankers‘ acceptances, deposits, certificates of deposit, bills of exchange, repurchase agreements, federal funds, and short-lived mortgage-, and asset-backed securities.

B) Scheme for Sustainable Structuring of Stressed Assets Explanation: Under a new ‗Scheme for Sustainable Structuring of Stressed Assets‘ (S4A), RBI allowed banks to take equity in debt laden firms permitting them to split total loans of struggling companies into sustainable and unsustainable based on the cash flows of the projects.

Description : B) Scheme for Sustainable Structuring of Stressed Assets Explanation: Under a new ‗Scheme for Sustainable Structuring of Stressed Assets (S4A), RBI allowed banks to take equity in debt ... loans of struggling companies into sustainable and unsustainable based on the cash flows of the projects.

Last Answer : Which bank has launched India‟s first certified green bond at London Stock Exchange (LSE)? A) State Bank of India B) Bank of Baroda C) ICICI Bank D) Axis Bank E) None of these

The initial minimum paid-up voting equity capital for a bank shall be 500 crore rupees. Thereafter, the bank shall have a minimum net worth of 500 crore rupees at all times.

Description : The initial minimum paid-up voting equity capital for a bank shall be 500 crore rupees. Thereafter, the bank shall have a minimum net worth of 500 crore rupees at all times.

Last Answer : Resident individuals and professionals having 10 years of experience in banking and finance at a senior level are also eligible to promote universal banks.

_________ is an account maintained in foreign currency with an Authorised Dealer Bank. A. Exchange Earners‘Foreign Currency Account B. Exchange Eligible Foreign Currency Account C. Earners‘ Eligible Foreign Currency Account D. Earners‘ Exchange Foreign Currency Account E. Equity Exchange Foreign Currency Account

Description : _________ is an account maintained in foreign currency with an Authorised Dealer Bank. A. Exchange Earners Foreign Currency Account B. Exchange Eligible Foreign Currency Account C. Earners ... Account D. Earners Exchange Foreign Currency Account E. Equity Exchange Foreign Currency Account

Last Answer : A. Exchange Earners‟Foreign Currency Account Explanation: Exchange Earners‘ Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Bank (Category – I Bank) in foreign exchange.

A part of debt instruments that are converted into Equity shares in the future at notice of the issuer is called _________ A. Secured Debentures B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. Unsecured Debentures

Description : A part of debt instruments that are converted into Equity shares in the future at notice of the issuer is called _________ A. Secured Debentures B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. Unsecured Debentures

Last Answer : B. Partly Convertible Debentures (PCD) Explanation: A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.

Which of the following instruments retain the debt character and can not be converted in to equity shares? A. Non Convertible Debentures (NCD) B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. None of the Above

Description : Which of the following instruments retain the debt character and can not be converted in to equity shares? A. Non Convertible Debentures (NCD) B. Partly Convertible Debentures (PCD) C. Fully convertible Debentures (FCD) D. Optionally Convertible Debentures (OCD) E. None of the Above

Last Answer : A. Non Convertible Debentures (NCD) Explanation: Non Convertible Debentures instruments retain the debt character and can not be converted in to equity shares.

________ are financial markets for the buying and selling of long-term debt or equity-backed securities. A. Bullion Market B. Capital Market C. Money Market D. All of the Above E. None of the Above

Description : ________ are financial markets for the buying and selling of long-term debt or equity-backed securities. A. Bullion Market B. Capital Market C. Money Market D. All of the Above E. None of the Above

Last Answer : B. Capital Market Explanation: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc

Which from the following is NOT a tangible element? (A) Fixtures (B) Trademarks (C) Monetary assets (D) Stockholder equity

Description : Which from the following is NOT a tangible element? (A) Fixtures (B) Trademarks (C) Monetary assets (D) Stockholder equity

Last Answer : (B) Trademarks