equity investment

  

Definition

Money that is invested in a firm by its owner(s) or holder(s) of common stock (ordinary shares) but which is not returned in the normal course of the business. Investors recover it only when they sell their shareholdings to other investors, or when the assets of the firm are liquidated and proceeds distributed among them after satisfying the firm's obligations. Also called equity contribution.

Use equity investment in a sentence

  • The equity investment by the principals should be distinguished from their roles as employees of the company and rewarded only based upon the performance of the entity.

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  • The angel investor's equity investment in Facebook initially was worth several thousand dollars however when Facebook went public the equity investment tripled in value.

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  • The equity investment was made to engage in a meaningful way to contribute to an organization we wholly believe in.

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