What is Equity?

[lara]

Can someone explain meaning of equity.

 

[Shane Warne]

Equity is the value in a business. It is what is left remaining after deduction of liabilities and assets. In the case of companies, the stake of the shareholders, in the case of individuals, the ownership of resources such as property minus debt. Equity in simple terms is the real value or the net value that you have.

 

[danisjohn]

Equity is a right to a company or an asset, and is computed as the difference between the assets and liabilities. The shareholders in the business holds the stake which demonstrates their claim following the payment of debts. Equity can be defined as home value, less mortgage, to individuals. It indicates monetary worth and it is essential to investment and net worth calculations.

 

[jainnorton]

Equity is the interest that is left in an entity asset after the liabilities. In a business it is the invested sum of owners or shareholders as well as retained earnings.