equity capital


Definition of equity capital

: capital (such as stock or surplus earnings) that is free of debt especially : capital received for an interest in the ownership of a business

Examples of equity capital in a Sentence

Recent Examples on the Web

Stricter regulation of European banks since the financial crisis has required that banks hold more equity capital than in the past. Costas Paris, WSJ, "Germany’s Commercial Shipping Fleet Shrinks by a Third," 23 Sep. 2018 From 1870 to 2017, with rare exceptions, the net income of commercial banks as a percentage of their equity capital fluctuated within a narrow range of 5% to 10% a year, regardless of the size of their capital buffers. Alan Greenspan, WSJ, "How to Fix the Great American Growth Machine," 12 Oct. 2018 Tesla would be wise to take advantage of its surprisingly strong quarter to raise as much equity capital as possible given those obligations. Charley Grant, WSJ, "Tesla Hits the Bull’s-Eye," 24 Oct. 2018 In the run-up to the crisis, banks on average kept about 8 to 10% of their assets as equity capital. Alan Greenspan, WSJ, "How to Fix the Great American Growth Machine," 12 Oct. 2018 Institutions and rich investors poured $71 billion in equity capital into private real estate funds that closed last year, according to Preqin. Ken Brown, WSJ, "Real Estate Stocks Are on Sale but No One Is Buying," 27 Apr. 2018 New World Angels is made up of 65 private investors, operators and entrepreneurs who provide equity capital and guidance to early-stage entrepreneurial companies with a strong presence in Florida. Marcia Heroux Pounds, Sun-Sentinel.com, "Florida angel group invests more than $500,000 in Boca-based digital advertising company," 15 June 2018 Its own central-bank governor reckons equity capital is taxed up to five times. The Economist, "Two Asian stock exchanges tussle over market data," 7 June 2018 Bank of America recently ranked first in the debt capital markets league tables in the U.S. and fifth in equity capital markets, according to first-quarter bank filings citing Dealogic. Liz Hoffman, WSJ, "Bank of America Capital Markets Head AJ Murphy Leaving For Silver Lake," 3 May 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'equity capital.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

See More

First Known Use of equity capital

1942, in the meaning defined above

Keep scrolling for more

Learn More about equity capital

Statistics for equity capital

Last Updated

25 Jun 2019

Look-up Popularity

Time Traveler for equity capital

The first known use of equity capital was in 1942

See more words from the same year

Keep scrolling for more

More Definitions for equity capital

equity capital

Legal Definition of equity capital

see capital

Comments on equity capital

What made you want to look up equity capital? Please tell us where you read or heard it (including the quote, if possible).


having a desire to acquire more things

Get Word of the Day daily email!

Test Your Vocabulary

Words for Summer: A Quiz

  • a closeup of a sunflower
  • Which of the following words means “of or relating to summer”?
True or False

Test your knowledge - and maybe learn something along the way.

Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!