Acquired equity

Definition of "Acquired equity"

A proposed term for the capital that a business firm other than a joint stock company obtains for meeting its financing needs for a specified period after which it would be returned to the investors. The basis for acquiring these funds could be any of the permissible modes of finance. This is to be distinguished from the owners’ equity, which is contributed by the owners on a permanent basis. An alternative term for such financing is redeemable equity.