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What is equity capital and its calculation method?

Equity capital is the capital invested by investors, which reflects the rights and interests of investors. Its capital is mainly obtained by accepting investment, issuing stocks or internal financing.

equity capital, also known as equity capital, refers to the balance of capital invested by investors after deducting liabilities, while capital refers to the total registered capital of an enterprise registered with the administrative department for industry and commerce, which includes all registered capital of various investors of the enterprise.

total amount of state-owned capital and equity: refers to the paid-in state-owned capital and the amount of equity enjoyed by the enterprise owners. For enterprises with diversified investment entities such as joint venture, cooperation and shareholding system, the balance of rights and interests enjoyed by state-owned capital at the beginning and end of the year is calculated and filled out according to the following formula:

(capital reserve+surplus reserve+undistributed profit-state-owned exclusive part) × (paid-in state-owned capital/paid-in capital)+state-owned exclusive part.

the state-exclusive part includes the amount of state-exclusive rights and interests formed by policy factors such as special state appropriation, transfer of various funds, entry of land valuation, tax refund or special relief, and state allocation of working capital.

Extended information:

Sovereign capital has the following characteristics:

(1) The ownership of sovereign capital belongs to the owner, so the owner can participate in the decision-making of enterprise operation and management, gain profits, and bear limited responsibilities for the operation of the enterprise.

(2) Sovereign capital belongs to the "permanent capital" occupied by enterprises for a long time, which forms the property right of legal persons. During the operation period of enterprises, investors may not withdraw their capital in any way except by legal transfer, and enterprises have the right to control property according to law.

(3) Sovereign capital has no pressure to repay the principal and interest, and its financing risk is low.

(4) Sovereign capital is mainly raised through national financial funds, funds of other enterprises, personal funds of residents, foreign capital and other channels, by absorbing direct investment, issuing stocks, and retaining profits.

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