There are various types of equity, but equity typically refers to shareholders' equity, which represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off.
 | | Term of the Day | Words to Know | | |  | | Equity | Equity is typically referred to as shareholder equity (also known as shareholders' equity) which represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off.
Equity is found on a company's balance sheet and is one of the most common financial metrics employed by analysts to assess the financial health of a company. Shareholder equity can also represent the book value of a company. Equity can sometimes be offered as payment-in-kind. | | Read More » | | How Do Equity and Shareholders' Equity Differ? | | A company's equity and shareholder equity are not the same thing. A company's equity typically refers to the ownership of a public company. Shareholders' equity is the difference between a company's total assets and its total liabilities. | | Read More » | | | Payment-in-Kind | | Payment-in-Kind (PIK) is the use of a good or service as payment instead of cash. It also refers to certain financial instruments. | | Read More » | | | Market Value Of Equity | | Market value of equity is the total dollar value of a company's equity calculated by multiplying the current stock price by total outstanding shares. | | Read More » | | | Home Equity | | Home equity is the calculation of a home's current market value minus any liens attached to that home. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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