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What is an equity trust?

Equity trust refers to a form of fund utilization in which the trust proceeds are dividends, bonuses and due transfer. Trust companies use trust funds to make equity investment in a project. Comparatively speaking, trust companies bear greater risks, and generally require corresponding measures to avoid risks, including absolute holding and phased holding.

as a kind of property right, equity can exist in the form of trust property. In an equity trust, it is called an operator trust if the beneficiary is finally determined to be an employee or manager of the company.

there are two categories, namely equity management trust and equity investment trust.

equity trust: the trustor transfers the company shares he holds to the trustee for management and punishment.

equity investment trust: refers to that the trustor entrusts the legally held funds to the trustee, and then the trustee uses the trust funds to invest in the equity of the company for management and punishment. The ownership of the company's equity invested by the trustee in the form of trust fund is naturally registered in the name of the trustee, and the trust property is transformed from the initial capital form to the equity form.