equity

/'ekwɪti/ noun
1. the ordinary shares in a company
2. the value of a company which is the property of its shareholders (the company’s assets less its liabilities, not including the ordinary share capital)
3. the value of an asset, such as a house, less any mortgage on it
COMMENT: ‘Equity’ (also called ‘capital’ or ‘shareholders’ equity’ or ‘shareholders’ capital’ or ‘shareholders’ funds’) is the current net value of the company including the nominal value of the shares in issue. After several years a company would expect to increase its net worth above the value of the starting capital. ‘Equity capital’ on the other hand is only the nominal value of the shares in issue.

Dictionary of banking and finance. 2015.

Synonyms:
, / , , , , , , , / , (as distinguished from conformity to mere enactments or statutes), (as against its mere letter) /


Look at other dictionaries:

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