An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits. A person holding such an ownership in the company does not enjoy the highest claim on the company's earnings. Instead, an equity holder's claim is subordinated to creditor's claims, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied. also called equities or equity securities or corporate stock.

Use equities in a sentence

When my company went bankrupt, my boss was frustrated because his position as an owner of the company's equities meant he would be further behind other creditors in line to get paid.

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We had a lot of equities and I explained to my son what that meant as far as business went for us.

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You need to try and get the best deal you can on any equities trading that you do so that you can get the most profit.

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index-linked security Stuttgart stock exchange (STU)