noun
equity
An ownership interest in a company or an asset's value after debts are deducted.
She builds equity in her home as she pays down her mortgage.
Etymology
The ownership sense developed through equitable rights in property. Equity now names the owner’s interest, including the value left once competing debt claims are deducted.
In context
paid off all my debts, my liabilities, my bills, what I owe, uh how much money would be left over for the shareholders? that is their equity.
More examples
- The investor receives equity in the company in exchange for funding.
- A $300,000 home with a $200,000 mortgage leaves $100,000 in equity.
- The fund invests in equities rather than government bonds.
Forms
equity · equities