Equity
in sentence
1327 examples of Equity in a sentence
Bank bonds could also be reduced and converted into equity, which would both avert a government takeover of banks and prevent socialization of bank losses from causing a sovereign debt crisis.
The government’s Guiding Fund program has provided a total of $27.4 billion to venture capital and private
equity
investors – a passive investment, but with special redemption incentives.
Lower borrowing costs would also boost China’s capital market, which is critical to provide
equity
financing to innovative small and medium-size businesses.
Many countries’ tax systems hugely favor debt over
equity.
Central banks and finance ministries are also complicit, since debt gets bailed out far more aggressively than
equity
does.
Likewise, developing countries should accelerate the pace of economic reform, and
equity
markets in too many emerging economies are like the Wild West, with unclear rules and lax enforcement.
First, it makes certain that the cost (if the losses exceed the combined value of
equity
and long-term debt) is shared by the international community and not only by the country where the institution is located, making the intervention credible even when the sovereign state is not.
Banks have less debt relative to their
equity
levels than they had in 2007.
After all, more debt (relative to equity) means a higher payoff when things go well.
SANTIAGO – The timing was exquisitely ironic:
equity
markets peaked – and a week later began crashing – just as pundits left this year’s World Economic Forum meeting in Davos, where they concluded that the global economy was on a steady upswing.
After all, there are two reasons to hold an
equity
claim: because it will pay a dividend or because its price is expected to go up.
Second, encourage spending and promote
equity
and efficiency by raising taxes on corporations that don’t reinvest, for example, and lowering them on those that do, or by raising taxes on speculative capital gains (say, in real estate) and on carbon- and pollution-intensive energy, while cutting taxes for lower-income payers.
The ensuing bubble in Japanese housing and
equity
prices inflated and burst not because Japan succumbed to US pressure to allow the yen to appreciate, but because Japan, in the end, resisted that pressure.
After all, participants in the housing and
equity
markets set prices with a view to prices in the bond market, so contagion from one long-term market to another seems like a real possibility.
For the governments of low-income countries, this is an opportunity, because it shows what they could achieve in terms of improving health
equity
and reducing poverty by targeting higher vaccination rates in poorer and more marginalized communities.
He also has invested in non-traditional asset classes, including real estate, oil, timber, private equity, and venture capital and buyout firms.
Since 1980 the ratio of stock market capitalization to GDP soared more than 13-fold, while
equity
financing rose 16-fold.
In addition, as Fink and others have warned, compensation practices that link top executives’ pay to measures of short-term success like quarterly earnings per share or annual
equity
performance also encourage “short-termism” in corporate investment decisions.
The recent stock-market plunge suggests that investors have concluded that
equity
prices have become unsustainable.
Third, developing countries should lead the debate over a new global agreement, in order to ensure
equity
and protect their right to develop.
But addressing debt risk in China – where social financing (a broad measure of credit, covering official and shadow bank lending and equity) rose from 130% of GDP to 207% early this year – is far from straightforward.
In 2008-2013, total
equity
financing from domestic stock markets accounted for only 3% of total social financing, most of which was allocated to SOEs and large corporations.
In fact, fears that new stock issues would depress
equity
prices were so strong that policymakers closed the market for initial public offerings for more than a year, beginning in 2012.
Because the non-bank asset-management industry remains small relative to the banking sector, there are limited funds available to inject
equity
to enable corporate borrowers, especially SMEs, to deleverage, despite high domestic savings.
In order to enable the corporate sector to manage the transition to a modern knowledge-based economy, China must also rebalance the financial system by carrying out a shift from bank and short-term funding toward
equity
and long-term bonds.
Meanwhile, increased
equity
would advance corporate-sector deleveraging, helping to cushion the financial system against shocks and delivering higher real returns to savers.
In fact, given that our largest banks are now undoubtedly too big to fail, they have even more incentive to increase their debt levels relative to their
equity.
Higher leverage increases their payoffs when times are good – as executives and traders are paid based on their “return on equity.”
And now the Swiss National Bank is moving in the exact opposite direction to Geithner – they are pushing these big banks to become smaller and to finance more of their activities with equity, rather than debt.
True, the Treasury would take
equity
stakes in some firms, so there would be some upside potential.
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