What is 'Equity'?

Equity is the value of an asset less the value of all liabilities on that asset. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | INVESTOPEDIA Equity Generally, equity is the value of an asset less the amount of all liabilities on that asset. As an accounting equation, one can represent it as Assets - Liabilities = Equity. Breaking it Down: Equity can have somewhat different meanings, depending on the context and the asset type. In finance in general, you can think of equity as one's degree ownership in... Read More » Related to "Equity" How dividends affect stockholder equity Find out how dividends affect a company's stockholder equity and how the accounting process changes based on the type of dividend issued. Read More » How are the Equity Market and Fixed-Income Market Different? Understand the differences between equity markets and fixed-income markets. Find out about each type of asset class and what each market consists of. Read More » Difference between private and public equity What is the better way for a company to attract investors; by making its stock available for sale to whoever wants some, or by petitioning rich people? Read More » Related Definitions 100% Equities Strategy A 100% equities strategy is an investment strategy for an individual portfolio or pooled funds vehicle such as a mutual fund. Read More » Return on Market Value of Equity - ROME Return on market value of equity (ROME) is a measure used to identify companies that generate positive returns on book value and trade at low valuations. Read More » Accounting Equation The accounting equation, also known as the balance sheet equation, is Assets = Liabilities + Equity and underpins the balance sheet's foundation. Read More » Security A security is a fungible, negotiable financial instrument that represents some type of financial value, usually in the form of a stock, bond, or option. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com If you wish to unsubscribe, please click here, or manage subscriptions 114 West 41st St, floor 8 New York NY 10036 © 2018, Investopedia, LLC, All Rights Reserved | Privacy Policy