THE
MANY MEANINGS OF EQUITY
The word equity has many meanings.
It was derived from the Latin root word equitas going into the French and English
languages.
Over the centuries the word equity acquired dozens
of collateral meanings. Any meaning depends on the context.
Equity can simply mean fairness as derived from equality. Like fairly dividing an inheritance or
Equity means justice.
Equity means ownership in real-estate or business partnership.
Equity means owning shares or stock of a publicly
traded corporation.
Equity means wealth.
Riches.
Equity means - value. Like, in brand-equity. A
product of a company with an awesome or popular brand-name commands
higher price for its service or product and bring more revenue than a similar
generic product.
A smart phone by Apple – iPhone, commands a higher
price than a smart phone by Samsung. A
camera by Sony costs more than a camera made by Fuji. Gasoline sold by Shell, costs per gallon more
than gasoline sold by Admiral gas station.
You start to get the idea -- Equity is a
matter of perception.
Valuation of equity is a matter of perception.
Perception creates
equity.
The challenge before us is – how to convert an idea,
opinion, perception or a benefit into a tangible, material or bankable equity?
The answer is that since perception is all in the
mind then it is the mind that has the capacity to convert perception into
equity.
For example: How do you transform communication
skills into equity?
Certain outfits charge $1,500 for a public speaking
training course of 36 hours. Another
organization provides lifetime of continuous public speaking training for a
nominal fee. Public speaking trainers
charge several thousand dollars as a training fee.
Bill Clinton who is a great communicator is said to
be paid now $400K for a 50 minutes speech.
Same was true for Ronald Reagan after his retirement. I am citing these examples only to illustrate
that public speaking has the potential – when it comes out from the right mouth
to transform itself into bankable dollars.
Or stated otherwise - bankable equity.
So do written words. Well-written tomes are copyrighted to ensure
the authors ownership and rights of income.
So what is the secret of turning benefits, ideas or
perception into equity?
It is the similar to what we stated elsewhere: Turn
Your Thoughts Into Reality!
As Napoleon Hill said:
Think and Grow rich.
And things are equity !
© Mandy Lender 2014
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