Equity

Equity is the value of ownership in an asset or business, calculated as the difference between the total assets and total liabilities. In a business context, equity represents an owner's or shareholders' residual claim on the company's assets after all debts are paid.​

• For companies, equity (often called shareholder's equity) is found on the balance sheet and reflects the ownership value left over if all debts are settled.

• For individuals, equity can refer to home equity (the market value of a home minus outstanding mortgage debt) or ownership in assets.

• In the stock market, equity refers to shares, or stocks, that represent ownership in a corporation, giving holders voting rights and a claim on company profits.​

Equity is a key measure of financial health and is used in evaluating investments, business worth, and personal net worth.