Is equity considered a down payment?
When an individual purchases a property the immediate payment that is being made is a down payment. Equity is considered equal to the down payment at the time of property purchase.
Also read:
Differentiate between equity shares and preference shares on the basis of :
(a) Payment of dividend
(b) Refund of capital
(c) Rate of dividend
(d) Voting Rights
Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.