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), or owners equity (for privately held companies), 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.
There are various types of equity that extend beyond a corporation's balance sheet. In this article, we'll explore the different types of equity including how investors can calculate a corporation's equity or net worth. | | 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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