What is 'Equity'?

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

| Term of the Day 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 To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy