Glossary

FundKite Glossary of Business Finance Terms.

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Equity Investment

Also known as seed funding, buying equity of a business gives the investor a stake in ownership of the company and a percentage of the profits. There is no interest paid in exchange for the funds, but continuous profits are taken out of the business’s earnings and major decisions must be agreed upon by all stakeholders. The stakeholders have a potential for greater profits, as well as unprotected loss if the company goes under.

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