equitization

Definition

This is the process of how real estate or other tangible assets are divided among several investors and placed into publicly traded stock. In some accounting principles, it also allows the parent company of the entity to calculate the net income of subsidiaries on a monthly basis, and then increase the investment, if necessary, before consolidating properties and assets.

Use equitization in a sentence

You should always make sure that you get the equitization correct so that all parties get what they are owed.

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The equitization process was going very well and I thought they were being divided in the right way for everyone.

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The equitization of the asset was efficient as we were able to place the real estate into a publicly traded stock.

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