Equity
in sentence
1327 examples of Equity in a sentence
Capital outflows will adversely affect their
equity
prices, push up their debt-to-equity ratios, and increase the likelihood of defaults.
Moreover, the chaebols’ ownership is often opaque, with webs of cross-shareholdings allowing founding families to exercise controlling power, despite holding only a small portion of
equity.
Equity
prices, as measured by the price-earnings ratio of the S&P 500 stocks, are now nearly 60% above their historical average.
To grasp how risky, consider this: US households now own $21 trillion of equities, so a 35% decline in
equity
prices to their historic average would involve a loss of more than $7.5 trillion.
Pension funds and other
equity
investors would incur further losses.
Over the last two years, many clean-tech
equity
indexes have performed poorly.
Restrictions on foreign investors’
equity
holdings or investments in services are being sequentially eliminated.
But the opposite is also true: strong, properly enforced land rights can boost growth, reduce poverty, strengthen human capital, promote economic fairness (including gender equity), and support social progress more broadly.
That would require an emphasis on
equity
over debt instruments, and on market-based financing over bank credit.
Equity
markets will undoubtedly favor Trump’s proposals to loosen fiscal policy, deregulate business and finance, and cut taxes.
This is already apparent in Europe, where bank
equity
prices have dropped steadily in recent months.
These conflicts are inbuilt, because firms that engage in commercial banking, investment banking, proprietary trading, market making and dealing, insurance, asset management, private equity, hedge-fund activities, and other services are on every side of every deal (the recent case of Goldman Sachs was just the tip of the iceberg).
Private
equity
is flowing in as well, not only because the valuations are attractive, but also because potential growth in Spain now seems within reach.
What makes the global greenback proposal attractive is that it provides the funds poor countries need while contributing to global economic growth, stability, and
equity.
For example, this summer’s stock-market crash was widely viewed as a natural correction, because
equity
prices – driven largely by government interventions – had risen over the previous year far above what economic fundamentals merited.
Yet investors have pushed
equity
indices to all-time highs, despite the feeble and uncertain recovery, while the VIX index, a proxy for investors’ perceptions of risk, fell to levels not seen since the boom years of 2005 and 2006.
But is it possible to justify the enormous rewards earned – or should we say received – by investment bankers, hedge fund managers and private
equity
partners?
Crucially, the HFSF was prevented from participating, imposing upon taxpayers a massive dilution of their
equity
stake.
As a result, despite capital injections of approximately €47 billion (€41 billion in 2013 and another €6 billion in 2015), the taxpayer’s
equity
share dropped from more than 65% to less than 26%, while hedge funds and foreign investors (for example, John Paulson, Brookfield, Fairfax, Wellington, and Highfields) grabbed 74% of the banks’
equity
for a mere €5.1 billion investment.
But China also has ample room to increase its tax base in ways that would increase overall efficiency and/or
equity.
The third coalition should comprise developing countries taking advantage of gains in energy security, equity, and sustainability to leapfrog into new energy pathways, much as they took advantage of mobile telephony.
The remaining $900 billion spilled over into financial markets, helping to spur a trebling of the US
equity
market.
Unsurprisingly, the wealth effects of monetary easing worked largely for the wealthy, among whom the bulk of
equity
holdings are concentrated.
This source of profit growth will disappear as interest rates rise, and some firms will need to reconsider business models – for example, private
equity
– that rely on cheap capital.
Limits on borrowing that make it difficult to earn an adequate return on
equity
encourage banks to load up on riskier, high-profit-margin loans – and requiring banks to hold more capital for supposedly riskier categories of assets exacerbates the problem.
Moreover, many banking systems have bigger capital buffers than in the past, enabling them to absorb losses from a correction in home prices; and, in most countries, households’
equity
in their homes is greater than it was in the US subprime mortgage bubble.
Slowing growth and policy missteps, together with signs that the US Federal Reserve will start tightening monetary policy by scaling back its “quantitative easing” (QE, or open-ended purchases of long-term assets), have triggered deep sell-offs in emerging economies’ currency, bond, and
equity
markets.
By the end of that year, flows of foreign direct investment (FDI), portfolio equity, and portfolio debt to emerging economies had reached record highs.
From East Asia to Western Europe, currencies swooned and
equity
prices tumbled – all because of China’s decision to allow a modest devaluation of its currency, the renminbi.
But will the reality of Trumponomics sustain a continued rise in
equity
prices?
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