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Equity

The term "equity" has multiple meanings, depending on the context. In connection with real estate, equity refers to the current value of the property less any mortgage on the property (in essence the net cash the seller would receive on sale of the property and pay off the mortgage). In the corporate finance context, "equity" means an ownership interest in an entity, such as stock. The term "shareholder's equity" refers to the amount of the funds contributed by the shareholders of a corporation plus the retained earnings (or losses) of the corporation, as shown on its balance sheet.

 

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   CEO

The "CEO" or "Chief Executive Officer" is the highest ranking officer of a corporation. He or she reports to the company's Board of Directors and is responsible for carrying out the Board's policies. The officer has day-to-day management responsibility for the operations of the corporation. The Chief Executive Officer may be, but is not necessarily, also the Chairman of the Board. A number of public companies have moved to having the CEO and Chairman officer positions be held by two different individuals for better corporate governance purposes.

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