Equity

1. A 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). Also referred to as "shareholders' equity".

3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.

4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.

5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio.

The term's meaning depends very much on the context. In finance, in general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company.


Investment dictionary. . 2012.

Synonyms:
, / , , , , , , , / , (as distinguished from conformity to mere enactments or statutes), (as against its mere letter) /


Look at other dictionaries:

  • equity — eq·ui·ty / e kwə tē/ n pl ties [Latin aequitat aequitas fairness, justice, from aequus equal, fair] 1 a: justice according to fairness esp. as distinguished from mechanical application of rules prompted by considerations of equity comity between… …   Law dictionary

  • Equity — can refer to:General* Equity (law), a branch of jurisprudence in common law jurisdictions * In many political and legal systems, a concept encompassing ideals of justice (fairness) and/or equality * Equality, the philosophical ideal of valuing… …   Wikipedia

  • Equity — Eq ui*ty, n.; pl. {Equities}. [F. [ e]quit[ e], L. aequitas, fr. aequus even, equal. See {Equal}.] 1. Equality of rights; natural justice or right; the giving, or desiring to give, to each man his due, according to reason, and the law of God to… …   The Collaborative International Dictionary of English

  • equity — [ek′wit ē] n. pl. equities [ME equite < OFr équité < L aequitas, equality < aequus: see EQUAL] 1. fairness; impartiality; justice 2. anything that is fair or equitable ☆ 3. the value of property beyond the total amount owed on it in… …   English World dictionary

  • Equity —   [ ekwɪtɪ; englisch »Billigkeit«] die, , Recht: 1) im angloamerikanischen Recht Bezeichnung für Regeln zur Ergänzung des Common Law mit dem Ziel des Ausgleichs von Härten, ähnlich der Billigkeitsklausel in § 242 BGB; ursprünglich… …   Universal-Lexikon

  • Equity — bezeichnet Equity (Recht), im angloamerikanischen Recht Regeln zur Ergänzung des Common Law Eigenkapital, ein Teil der Passivseite der Bilanz Diese Seite ist eine Begriffsklärung zur Unterscheidung mehrerer mit demselben Wort …   Deutsch Wikipedia

  • Equity — остаточная стоимость счета по фьючерсным сделкам, если предположить его ликвидацию по текущей рыночной цене. См. также: Расчетные палаты Финансовый словарь Финам …   Финансовый словарь

  • equity — The value of a debtor s interest in property that remains after liens and other creditors interests are considered. (Example: If a house valued at $60,000 is subject to a $30,000 mortgage, there is $30,000 of equity.) (BankruptcyAction.com) This… …   Glossary of Bankruptcy

  • Equity — 1.) a ↑trade union in the UK for actors and actresses in film, theatre, TV, and radio 2.) a ↑trade union in the US for actors and actresses who perform in the theatre. Its full name is the Actor s Equity Association …   Dictionary of contemporary English

  • equity — [n1] impartiality disinterestedness, equitableness, even handedness, fair mindedness, fairness, fair play, honesty, integrity, justice, justness, nonpartisanship, piece, reasonableness, rectitude, righteousness, square deal*, uprightness;… …   New thesaurus

  • equity — early 14c., from O.Fr. equite (13c.), from L. aequitatem (nom. aequitas) equality, conformity, symmetry, fairness, from aequus even, just, equal (see EQUAL (Cf. equal)). As the name of a system of law, 1590s, from Roman naturalis aequitas, the… …   Etymology dictionary

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