equity
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equity
The part of a company's capital that belongs to the owners. It is the difference between the assets and the debts (borrowed capital).
Für die Gründung der Firma mussten die Gesellschafter ein Eigenkapital von 25.000 Euro aufbringen.
To found the company, the shareholders had to raise equity of 25,000 euros.
The word is made up of 'eigen' (own) and 'Kapital' (capital). So it literally describes a company's 'own capital', in contrast to 'Fremdkapital' (borrowed capital), which is borrowed from others.
Ein hohes Eigenkapital macht ein Unternehmen für Investoren attraktiver.
High equity makes a company more attractive to investors.
In an economic context, 'Eigenkapital' (equity) is often used with certain verbs. Typical phrases are 'Eigenkapital aufbringen' (to raise equity), 'Eigenkapital erhöhen' (to increase equity), or 'das Eigenkapital stärken' (to strengthen equity).
Die Gründer müssen ausreichend Eigenkapital aufbringen, um einen Kredit zu bekommen.
The founders have to raise sufficient equity in order to get a loan.
'Eigenkapital' (equity) is a technical term from business and finance. It rarely occurs in everyday usage, but it is essential for anyone dealing with founding a company or with finances.
In der Bilanz wird das Eigenkapital auf der Passivseite ausgewiesen.
On the balance sheet, equity is shown on the liabilities side.
capital
'das Kapital' and 'das Eigenkapital' both belong to the language of business and finance. 'Kapital' is the more general term for money or assets that are available for investments or for a company. 'Eigenkapital' is more specific: it is the part of the capital that belongs to the owners and is not borrowed. The words can be confused because equity is a type of capital. If you are speaking generally about available resources, 'Kapital' fits. If you mean the owner's own share as opposed to debt, 'Eigenkapital' is more precise.
Bei der Bank fragt der Berater, wie hoch das Eigenkapital der Firma ist.
At the bank, the advisor asks how high the company's equity is.
Die Gründer suchen Kapital, damit sie neue Maschinen kaufen können.
The founders are looking for capital so they can buy new machines.