Accounting Dictionary

Equity Interest

the amount of ownership an entity or individual has in an organization.

If I buy one share of stock in a business and there are 99 other shares, I have a 1% equity interest in the company. This equity interest is important because it may entitle me to 1% of the company’s profits or dividends distributed, may allow me a vote on certain company decisions, and provides me access to certain information about the company that may not be available to the public.

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