Equity
1. Another word for stock or any other security representing an ownership interest.
2. On a company’s balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). This is also equal to total assets minus total liabilities or the net assets of a company. Also referred to as “shareholders’ equity”.
3.Equity can also refer to the net assets of an individual. This can either be a total sum a margin account, or even equity in a house.
The stock market is also known as the equities market.
Related Terms
- Equity Financing
- Equity Fund
- Long-Term Equity Anticipation Securities – LEAPS
- Buy, Strip and Flip
- Price to Book Value
- Equity Risk Premium
