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The equity method of accounting is a technique used to record investments in other companies. Equity represents the value of an owner's stake in a business. Understanding equity is crucial for finance professionals, especially CFA® Level II candidates. Learn how the equity method works and its application in financial statement analysis.

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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