Equity
in sentence
1327 examples of Equity in a sentence
The City of London, lower Manhattan, and a few other centers became money machines that made investment bankers, hedge-fund managers, and private
equity
folk immoderately wealthy.
Already the market is full of rumors that guaranteed bonuses are returning, that hedge funds are making double-digit returns, and that activity is reviving in the private
equity
market.
When crisis hit, however, the cost of the meltdown exceeded the companies’
equity
and thus had to be socialized.
Among the services that people want are health and education, two sectors in which government naturally plays an important role (owing to inherent market imperfections in these sectors and concerns about equity).
Even the four “Asian Tigers” – Hong Kong, Singapore, South Korea, and Taiwan – which had previously grown “with equity,” have lately faced rising inequality.
The best way to enhance both
equity
and growth is effective development of human capital, which not only supports higher incomes today, but also ensures intergenerational mobility tomorrow.
Asia’s leaders must do better if they are to realize the true promise of “growth with equity.”
Now,
equity
prices are reaching relatively high levels by conventional measures – and investors are starting to get nervous.
A lower discount rate and/or a higher rate of expected earnings growth would justify higher
equity
valuations.
According to the standard formulation, stock prices tend to revert toward the present value of estimated future earnings (including growth in those earnings), discounted at the so-called “risk-free rate,” augmented by an
equity
risk premium.
More precisely, the forward earnings yield – that is, the inverse of the P/E ratio – is equal to the risk-free rate plus the
equity
premium, minus the growth rate of earnings.
Monetary policy may have bolstered stock prices in two ways, either lowering the discount rate by compressing the
equity
risk premium, or simply reducing risk-free rates for long enough to raise the present value of stocks.
In either case,
equity
prices should level off at some point, allowing earnings to catch up, or even correct downward.
What is certain is that expectations of high earnings growth would have a more durable positive effect on P/E levels than the suppression of the
equity
risk premium.
In my view, it is difficult to make a strong case for a significant sustained increase in earnings growth in this environment, meaning that growth alone would not justify current
equity
valuations.
Today,
equity
is violated in most international organizations through at least two routes.
Notwithstanding the euphoric resurgence of global
equity
markets over the past two years, the world economy remains fragile.
But he could have devised more specific measures, such as asking the Securities and Exchange Commission to freeze new share issues, because
equity
leveraging was fueling the bubble.
Additionally, 30% of our grants are tied to progress on equity, efficiency, and learning outcomes – including for students living with disability.
Finally, public
equity
markets will have to be strengthened.
Based on those values, contracts with existing
equity
and debt holders should then be restructured.
If the losses are big enough that existing
equity
and debt holders are wiped out, government insurers should make up the difference to protect depositors.
Following that, the restructured bank can be recapitalized by raising new debt and
equity.
As a result, commercial providers of debt or
equity
cannot get the high returns and quick exits that they seek.
Today, the microfinance industry serves about 150-200 million borrowers around the world, and has grown rapidly by securing access to several billion dollars in
equity
financing.
Subsequently, they raised
equity
capital from investors seeking to make a social impact – Compartamos from Accion and the IFC, and SKS from Unitus, Silicon Valley venture capitalist Vinod Khosla, and an Indian government development agency.
SKS raised more
equity
from investors such as Sequoia and Odyssey Capital, before going public on the Indian stock exchange in 2010, raising about $358 million at a valuation exceeding $1.6 billion.
Imagine a development bank levering up collateral that comprises post-privatization
equity
retained by the state and other assets (for example, real estate) that could easily be made more valuable (and collateralized) by reforming their property rights.
Finally, imagine the effect of all of this on Greece’s financial, fiscal, and social-security ecosystem: With bank shares skyrocketing, our state’s losses from their recapitalization would be extinguished as its
equity
in them appreciates.
But now might be an ideal moment to tackle that challenge, given the attention currently being paid to improving pay equity, which includes closing the gender pay gap, confronting rising income inequality, and reducing the ratio of CEOs’ compensation to that of the median employee.
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