equity

Definition 1

Ownership interest in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value. In real estate, it is 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). 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.

Definition 2

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

Definition 3

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

Definition 4

The value of a property minus the owner's outstanding mortgage balance.

Definition 5

Fairness in law.

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Related Terms

asset/equity ratio, debt/equity ratio, average equity, capital, capital turnover, common stock, cost of equity capital, debt, debt-equity swap, Euroequity issues, external financing, growing equity mortgage, reverse mortgage, home equity debt, investor's equity, junior equity, LEAPS, margin, net worth, open trade equity, security, sweat equity, trading on the equity, home equity, negative equity, Private Investment in Public Equity

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