Investment Equity
From Open Risk Manual
Definition
Investment Equity. Equity that represents an ownership interest in some entity, but may or may not take the form of shareholders's equity. A share of equity interest in an entity. The most common form is common stock. Equity entitles the holder to a pro rata ownership in the company.
Issues and Challenges
Typically an investment in some entity may take the form of shares (issued or privately held), i.e., shareholders' equity, or it may take the form of some capital amount which is not reflected in shareholders' equity. In each case, there would typically be a contractual basis for the investment setting out what controls or other benefits accrue to the investor.
