What is the meaning of Equity?

In the broadest sense,' Equity' means ownership. If you own stock, you have equity in, or own a portion however small of the company that issued the stock. Having equity is the opposite of owning a bond or commercial paper, which is a debt the company must repay to you. Equity also means the difference between the amount an asset's current market value the amount it could be sold for and any debt or claim against it. For example, if you own a home currently valued at $300, 000 but still owe $200, 000 on your mortgage, your equity in the home is $100, 000.

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APABarry Goldsmith. (2010). equity. Retrieved September 21, 2026, from http://smartdefine.org/equity/definitions/1153045
ChicagoBarry Goldsmith. 2010. "equity" http://smartdefine.org/equity/definitions/1153045 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, equity, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/equity/definitions/1153045>.
MLABarry Goldsmith. "equity" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/equity/definitions/1153045>
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