InvestorWords.com

equity

Definitions (4)

1. In the context of a futures trading account, it is the value of the securities in the account, assuming that the account is liquidated at the going price. In the context of a brokerage account, it is the net value of the account, i.e. the value of securities in the account less any margin requirements.

2. Ownership interest in a corporation in the form of common stock or preferred stock.

3. Total assets minus total liabilities; here also called shareholder's equity or net worth or book value.

4. Real Estate: The difference between what a property is worth and what the owner owes against that property (i.e. the difference between the house value and the remaining mortgage or loan payments on a house).