equity – financial liability, why?

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December 17, 2020 at 12:48 pm #600186
Noah098
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sir why is equity considered as a financial liability for the issuing company if there is no real contractual obligation to pay any dividends or repay capital either?
December 22, 2020 at 8:48 pm #600601
P2-D2
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Hi,

Equity is not considered as a financial liability. What is making you think that it is? Let me know and I can help explain.

Thanks
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