Equity Line Loan Capital
Equity capital is defined as the amount of capital provided by the company's owner(s). Providing new equity (an "issuance" of new equity) gives the firm new capital and increases owners' equity by the same amount and time needed. An issuance of new shares, to raise new capital, increases shareholders' equity. Formally, owners' equity is also a form of liability, but is deemed separate and different from other liabilities since it is a residual interest, ranked last in the series; equity is generally considered to be an asset.
Equity trading can be performed by the owner of the shares, or by an agent authorized to buy and sell on behalf of the share's owner. Proprietary trading or principal trading is buying and selling for the trader's own profit or loss. In this case, the principal is the owner of the shares. Agency trading is buying and selling by an agent, usually a stock broker, on behalf of a client. Agents are paid a commission for performing the trade.
