Equity Capital is the funds paid into a business by investors in exchange for common or preferred stocks that is computed by estimating the current market value, and a company gets from selling shares rather than borrowing money.
Reference Definition by OECD: Equity Capital comprises: (i) equity in branches; (ii) all shares in subsidiaries and associates (except nonparticipating, preferred shares that are treated as debt securities and included under direct investment, other capital); and (iii) other capital contributions.
Related Definitions in the Project: The Commercial Definitions
