Definition of Equity:
Fairness and impartiality towards all concerned, based on the principles of evenhanded dealing. Equity implies giving as much advantage, consideration, or latitude to one party as it is given to another. Along with economy, effectiveness, and efficiency, Equity is essential for ensuring that extent and costs of funds, goods and services are fairly divided among their recipients. See also equitable.
Law: (1) The English system of justice that developed during 17th to 19th centuries, separate and distinct from the system of common law. Not bound by the precedents, it tempered the harshness and inflexibility of common law, especially in cases involving families and children. Although both systems of law merged by 1875, the rules of equity prevail in case of a conflict with the rules of common law. (2) Any right to an asset or property, held by a creditor, proprietor, or stockholder (shareholder).
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.
Accounting: (1) Ownership interest or claim of a holder of common stock (ordinary shares) and some types of preferred stock (preference shares) of a company. On a balance sheet, equity represents funds contributed by the owners (stockholders) plus retained earnings or minus the accumulated losses. (2) Net worth of a person or company computed by subtracting total liabilities from the total assets. In case of cooperatives, equity represents members investment plus retained earnings or minus losses.
The quality of being fair and impartial.
The value of the shares issued by a company.
(in the US, UK, and several other countries) a trade union to which most professional actors belong.
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.
The value of a mortgaged property after deduction of charges against it.
Synonyms of Equity
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How to use Equity in a sentence?
- People who have built up a significant amount of equity in their homes.
- There are various types of equity, but equity typically refers to shareholder 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.
- Without the proper amount of equity , the loan officer would not approve the loan the couple was trying to get for improvements to their house.
- He owns 62% of the groups equity.
- It is important to treat all students with equity ; it is moral unacceptable to allow favorite students to get away with things while less-liked pupils are punished.
- Equity represents the shareholders’ stake in the company. The calculation of equity is a company's total assets minus its total liabilities. .
- We can think of equity as a degree of ownership in any asset after subtracting all debts associated with that asset.
- The firm is losing equity very quickly, with projections for the future showing the equity to have a very grim future.
- Equity of treatment.
Meaning of Equity & Equity Definition