Equity

Low equity means smaller companies.

OR Small cap and mid cap companies.

LOW equity means a company which has low no. of shares issued in market.

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sorry sir this is not a correct answer, MRF company has low equity not more than five crores but it is not a small cap or mid cap, it is large cap company with low equity.

Originally posted by : k praveen
	sorry sir this is not a correct answer, MRF company has low equity not more than five crores but it is not a small cap or mid cap, it is large cap company with low equity.

to whom ??

dhiraj sir or me?

:)

Thanks for correcting, Mr. Gopal & Mr K Praveen.

Originally posted by : Dhirajlal Rambhia
	Thanks for correcting, Mr. Gopal & Mr K Praveen.

This is the reason why  I follow you. You are the true leader and genius down to earth. 

Thanks.

This is a very good ratio in low equity or high Equity Trading Tips for an investor,  if he is analyze the opportunity to invest. This ratio show what amount of money he will acquire if the company will go bank, because debt obligation for the banks be supposed to be covered and only subsequent to all other creditors, shareholders are taking their part.

The need level of ratio depends on the subdivision where the company is working at. If the subdivision is safe and the cash flow in the sector are stable, the level can vary as of 40 per cent and the company motionless can be very attractive for the investors, but for less constant companies, whose results are more hot-blooded depending on the stage of the economy or the seasonal changes, the equity ratio should be much higher to attract investors.