Recording Private Equity
There is a burgeoning debate of the purpose behind private equity, a common misconception to treat private equity separately from foreign direct investment (FDI). The difference is blurred on account of private equity not entering the country through the stock market. Private equity generally flows to unlisted firms and to firms where the percentage of shares is relatively smaller than the promoter or investor held shares (also known as free-floating shares).
The main point of contention behind differentiating private equity from FDI is that FDI is used solely for production whereas in the case of private equity the investor can reclaim their money after a revaluation period and make speculative investments in other financial assets.
Presently, most countries report private equity as a part of FDI.
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Famous quotes containing the words equity, recording and/or private:
“If equity and human natural reason were allowed there would be no law, there would be no lawyers.”
—Christina Stead (1902–1983)
“He shall not die, by G—, cried my uncle Toby.
MThe ACCUSING SPIRIT which flew up to heaven’s chancery with the oath, blush’d as he gave it in;—and the RECORDING ANGEL as he wrote it down, dropp’d a tear upon the word, and blotted it out for ever.”
—Laurence Sterne (1713–1768)
“For it is a fire that, kindling its first embers in the narrow nook of a private bosom, caught from a wandering spark out of another private heart, glows and enlarges until it warms and beams upon multitudes of men and women, upon the universal heart of all, and so lights up the whole world and all nature with its generous flames.”
—Ralph Waldo Emerson (1803–1882)