Equity (finance)

In finance, equity is ownership of assets that may have debts or other liabilities attached to them. Equity is measured for accounting purposes by subtracting liabilities from the value of an asset. For example, if someone owns a car worth $9,000 and owes $3,000 on the loan used to buy the car the difference of $6,000 is equity. Equity can apply to an entire business entity. Selling equity in a business is an essential method for acquiring cash needed to start up and expand operations; when liabilities attached to an asset exceed its value, the difference is called a deficit and the asset is informally said to be "underwater" or "upside-down". In government finance or other non-profit settings, equity is known as "net position" or "net assets"; the term "equity" describes this type of ownership in English because it was regulated through the system of equity law that developed in England during the Late Middle Ages to meet the growing demands of commercial activity. While the older common law courts dealt with questions of property title, equity courts dealt with contractual interests in property.

The same asset could have an owner in equity, who held the contractual interest, a separate owner at law, who held the title indefinitely or until the contract was fulfilled. Contract disputes were examined with consideration of whether the terms and administration of the contract were fair — that is, equitable. Any asset, purchased through a secured loan is said to have equity. While the loan remains unpaid, the buyer does not own the asset; the lender has the right to repossess it if the buyer defaults, but only to recover the unpaid loan balance. The equity balance — the asset's market value reduced by the loan balance — measures the buyer's partial ownership; this may be different from the total amount that the buyer has paid on the loan, which includes interest expense and does not consider any change in the asset's value. When an asset has a deficit instead of equity, the terms of the loan determine whether the lender can recover it from the borrower. Houses are financed with non-recourse loans, in which the lender assumes a risk that the owner will default with a deficit, while other assets are financed with full-recourse loans that make the borrower responsible for any deficit.

The equity of an asset can be used to secure additional liabilities. Common examples include home equity loans and home equity lines of credit; these decrease the owner's equity. A business entity has a more complicated debt structure than a single asset. While some liabilities may be secured by specific assets of the business, others may be guaranteed by the assets of the entire business. If the business becomes bankrupt, it can be required to raise money by selling assets, yet the equity of the business, like the equity of an asset measures the amount of the assets that belongs to the owners of the business. Financial accounting defines the equity of a business as the net balance of its assets reduced by its liabilities; the fundamental accounting equation requires that the total of liabilities and equity is equal to the total of all assets at the close of each accounting period. To satisfy this requirement, all events that affect total assets and total liabilities unequally must be reported as changes in equity.

Businesses summarize their equity in a financial statement known as the balance sheet which shows the total assets, the specific equity balances, the total liabilities and equity. Various types of equity can appear on a balance sheet, depending on the form and purpose of the business entity. Preferred stock, share capital and capital surplus reflect original contributions to the business from its investors or organizers. Treasury stock appears as a contra-equity balance that reflects the amount that the business has paid to repurchase stock from shareholders. Retained earnings is the running total of the business's net income and losses, excluding any dividends. In the United Kingdom and other countries that use its accounting methods, equity includes various reserve accounts that are used for particular reconciliations of the balance sheet. Another financial statement, the statement of changes in equity, details the changes in these equity accounts from one accounting period to the next. Several events can produce changes in a firm's equity.

Capital investments: Contributions of cash from outside the firm increase its base capital and capital surplus by the amount contributed. Accumulated results: Income or losses may be accumulated in an equity account called "retained earnings" or "accumulated deficit", depending on its net balance. Unrealized investment results: Changes in the value of securities that the firm owns, or foreign currency holdings, are accumulated in its equity. Dividends: The firm reduces its retained earnings by the amount of cash payable to shareholders. Stock repurchases: When the firm purchases shares into its own treasury, the amount paid for the stock is reflected in the treasury stock account. Liquidation: A firm that liquidates with positive equity can distribute it to owners in one or several cash payments. Equity investing is the business of purchasing stock in companies, either directly or from another investor, on the expectation that the stock will earn dividends or can be resold with a capital gain.

Equity holders receive voting rights, meaning that they can vote on candidates for the board of directors and, if their holding is large enough, influence management decisions. Investors in a newly established firm must contribute an initial amount of capital to i

Wennington Junction rail crash

Just west of Wennington railway station lies Wennington junction where the Furness and Midland Joint Railway leaves the Leeds to Morecambe section of the Midland Railway. On 11 August 1880 the 12:15 Leeds to Lancaster train derailed at the junction points continued for 166 yards before striking the abutment of a bridge; the junction had no super-elevation as continuous crossing timbers were in use thus reducing the safe speed, the Midland Railway were advised to correct this. But the enquiry found the braking power of the train to be grossly inadequate. Only the locomotive was fitted with a Westinghouse brake and there was only one brake van on the train. Although the Midland Railway was fitting continuous brakes to its passenger trains the enquiry pointed out that such a recommendation had been made twenty years and the actions had still not been completed. Rolt, L. T. C.. Red for Danger. Newton Abbot: David & Charles. Pp. 164–165. ISBN 0-7153-8362-0. Board of Trade report transcription

San Sebastián Cathedral

The Cathedral of the Good Shepherd located in the city of San Sebastián, Basque Country, Spain. It is the seat of the suffragan Diocese of San Sebastián and subordinated to the Archdiocese of Pamplona y Tudela; the most remarkable religious building of San Sebastián, it is endowed with a strong verticality and is the largest in Gipuzkoa. Its construction took place in the last years of the 19th century in a Historicist Neo-Gothic style; the church, dedicated to the Good Shepherd, has held the rank of cathedral since 1953. In 1881 a Royal Order created a new parish division in San Sebastián; this new division included the creation of a parish, claimed for years by locals in the southern part of the city, which became known as the "Ensanche of Amara". In August 1887 the City Council gave an area between the river Urumea and Beach of La Concha, occupied by sand dunes and marshes, to build the church; until it was finished, the spiritual needs of the local congregation were met by a provisional parish, dedicated to the Sacred Heart of Jesus.

Opened in March 1888, this rudimentary church was made of wood and was between Loiola and Príncipe Streets. In December 1887 a construction meeting chaired by the Dean D. Martín Lorenzo de Urizar Zalduegui-Ariño defined the bases of the project competition and set a budget of 750,000 pesetas, like the capacity of the church and its architectural style, it should be pointed. Four projects were presented, with the chosen design being by the donostiarra architect Manuel de Echave, entrusted with the supervision of works; the new church would be dedicated to the Good Shepherd. The Spanish Royal Family, who were vacationing in the city, were invited to the laying of the foundation stone; the events took place on September 29, 1888. The queen regent, Maria Christina, her children and the Infante Antonio, along with ministers and other officials, attended the solemn mass that the diocesan bishop D. Mariano Miguel Gómez held in the provisional parish church of the Sacred Heart. Following the ceremony, the royal entourage moved to the site of the new church and there proceeded to lay the foundation stone, which covered a lead box in which were enclosed pictures of the Pope and the Royal family, various coins of the time and copies of the Gazette of Madrid and of the Ecclesiastical Gazette.

The minutes of the ceremony were signed by the baby king Alfonso XIII, aged two years and four months, for which his mother had to take his hand. It is the first signature of Alfonso XIII on an official document. Manuel de Echave went on to oversee the works having as master of the same José Vicente Mendía and, after his death, the master mason Agustín de Zumalabe; the foundation work required a careful drainage of the site to provide consolidated sand. For the general architecture the sandstone quarries of Mount Igeldo were chosen; the vaults were made with tufa from Ocio and slate roofs were brought from Angers. The workers were all Basques. For the size of the stone of the capitals, ornaments and needles that decorate the interior and exterior, the models presented by the local artist Julio Gargallo were accepted. After just nine years of work, the Church of the Good Shepherd was consecrated for worship on July 30, 1897. Again, the Royal Family, the Queen Regent María Cristina, King Alfonso XIII and the Infanta María Teresa attended the grand ceremony.

The mass was officiated by D. Ramón Fernández de Piérola, Bishop of Vitoria, the diocese to which belonged Guipuzkoa; the tower was completed in 1899 under the direction of Ramón Cortázar. In the end, the construction of the church cost more than 1,500,000 pesetas, and, not including the altars and altarpieces. Pope John Paul I's papal bull Quo Commodus of November 2, 1949 created the Diocese of Bilbao and San Sebastián seceding from the Diocese of Vitoria; the first bishop was the Catalan ecclesiastic Jaime Font i Andreu, appointed to office on May 13, 1950 and took office on September 3 that year. With the need to choose a Donostiarra church to host the local diocese, the choice was, by its magnificence and modernity, the Church of the Good Shepherd. On July 30, 1953 the church achieved the rank of Cathedral with the consecration of the new altar, acting as pastor D. Ignacio Lasquibar Olaciregui, who in 1954 took over from D. Román Mendiguchia. After four years of reforms and changes that were needed to put the church to its new use as a diocesan church.

For this the presbytery was transformed with the installation of a new table after the removal of the original altar, of a florid Gothic style, carved in cedar wood by the Barcelonese workshops of Juan Riera, it was replaced by choir stalls and an image of the Good Shepherd. The Chapel of the Immaculate Conception was transformed into a chapter house, the Chapel of Christ, in the crypt, became the new parish vestry, leaving the former sacristy for the exclusive service of the council. In 1972, Bishop Jacinto Argaya Goicoechea undertook a second improvement of the church to mark the 75th anniversary of his inauguration; the neo-gothic pulpit made by Nicolás Medive, attached to one of the pillars, was removed. Removed were the altars dedicated to Our Lady of Sorrows, Virgin of the Rosary and Virgin of the Pillar; the roofs and windows were restored and walls and vaults were cleaned. The old floor of American oak was replaced by a new one in marble; the interior lighting was improved and new benches were installed.

In the plans of the architect Manuel de Echave, inspired by Cologne Cathedral, the dimensions of the church consist of: an area of 1,915 square metre