Equity
in sentence
1327 examples of Equity in a sentence
For example, the SEC has traditionally thought about adequate
equity
capital in a regulated business, primarily as the amount needed to help compensate customers in the event that individual firms fail.
But it would be much better, as Stein suggests, to think about
equity
capital from a systemic perspective – that is, how much loss-absorption is needed to prevent some form of a cascading confidence crisis.
In particular, if the firm’s
equity
capital erodes, the government should not provide funds (directly or indirectly) to increase the cushion available to bondholders.
Rather, bonds should be at least partly converted into
equity
capital, and any infusion of new capital by the government should be in exchange for securities that are senior to those of existing bondholders.
Banks have been gradually placed on a stronger footing, with more loss-absorbing
equity
capital.
Unfortunately, however, the economic trajectory that Congress is plotting, though it may well boost growth in the short term, is ultimately on a collision course with both
equity
and sustainability.
From southern Europe to Malaysia and China, citizens are taking to the streets to demonstrate their desire for
equity
and justice.
Already, $2.2 trillion of wealth has been wiped out, and about eight million households have negative equity: their homes’ are worth less than their mortgages.
By 2010, the fall in home prices will be close to 30% with $6.6 trillion of home
equity
destroyed and 21 million households – 40% of the 51 million with a mortgage – facing negative
equity.
This excessive dependence on credit stems from the lack of adequate funding and the relative underdevelopment of China’s
equity
markets, with market capitalization amounting to only 37% of GDP, compared to 104% of GDP in the US.
Structural concentration of incomes at the top is combining with easy money and a chase for yield, driving
equity
prices upward.
Despite sharp declines in
equity
prices worldwide, market capitalization as a share of world GDP remains high.
But now that has largely played out, although governments could do more to support female labor force participation and pay
equity.
But I would argue that the decline in volatility in currency, bond, and
equity
markets largely reflects low inflation in many parts of the world, and the lack of significant monetary-policy adjustments by major central banks in recent years.
But, as the Indian economist and frequent policymaker Vijay Kelkar has put it, “India needs to fashion [its] own sui generis model of growth and development…towards an advanced economy, always promoting inclusive growth, and thus gain the benefits of enhanced efficiency, greater equity, and better governance under a liberal democracy.”
“Banks will need to hold more capital” is a common refrain, describing efforts by regulators – and, in the United States, some legislators – to require that financial institutions fund themselves with relatively more
equity
and less debt.
Capital, in this context, is simply a synonym for equity, which is on the liability side of a bank’s (or anyone’s) balance sheet.
Higher capital requirements mean, in essence, more
equity
funding and – by implication, under any sensible definition – relatively less debt for a given balance-sheet size.
This is an attractive and sensible policy, because today’s global banks have relatively small slivers of
equity
underpinning their operations.
Hoenig looks at how much
equity
banks have in the simplest and most transparent measure (also known as leverage).
Six years after the world’s largest financial crisis, our megabanks have
equity
amounting to no more than 5% of their balance sheets.
(In fact, some banks have not much more than 3% equity.)
Even their tax-averse sponsors, while appreciative of the rabble’s efforts to protect their wealth, are now fearful of the impact of these wayward ideas on the investment climate and
equity
prices.
Furthermore, the Saudi government has identified dozens of other state-owned enterprises (SOEs) to privatize, in order to help fill government coffers, deepen the
equity
market, and boost the private sector’s role in the economy.
Furthermore, a dual-pricing approach to privatization – in which domestic investors are offered
equity
at a discount – could send the wrong message to international investors.
The troubling fact about the Great Depression is that it was severe, global, and lasted over a decade – and that it followed the collapse of an
equity
and real-estate boom, roughly as happened before the current crisis.
Likewise, many people have been wondering if the weakness that followed the
equity
and real-estate crash in Japan at the beginning of the 1990’s is relevant to our experience today.
According to the European Commission, creating a single European capital market would reduce the cost of
equity
capital for EU businesses by 0.5% and lower the cost of corporate debt financing by 0.4%.
Seizing Sustainable DevelopmentHELSINKI/JOHANNESBURG – The world is on an unsustainable path, and must urgently chart a new course forward, one that brings
equity
and environmental concerns into the economic mainstream.
So, how do we begin to tackle the massive challenge of retooling our global economy, preserving the environment, and providing greater opportunity and equity, including gender equality, to all?
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