equity-ownership-structure

Vocabulary Word

Definition

The term 'equity ownership structure' refers to the distribution of equity, or ownership, in a company. It shows who owns the company's shares and what proportion they hold, providing a clear picture of who controls the company.

Examples in Different Contexts

In business strategy, 'equity ownership structure' impacts decision-making and financial strategies. A business strategist might explain, 'A diversified equity ownership structure can enhance stability and attract a broader range of investors to our company.'

Practice Scenarios

Startup

Scenario:

We've been discussing the proposed investment terms from our new funding round, which might change our current cap table.

Response:

While updating the cap table, we should ensure our equity ownership structure remains balanced and fair to all stakeholders.

Tech

Scenario:

Considering the considerable interest earned by our recent tech innovation, it might be time to reconsider our equity division.

Response:

Revision of our equity ownership structure seems a good move as long as it doesn't jeopardize our original vision and values.