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- Dictionaryequity/ˈɛkwɪti/
noun
- 1. the quality of being fair and impartial: "equity of treatment" Similar Opposite
- 2. the value of the shares issued by a company: "he owns 62% of the group's equity" Similar
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Learn the various meanings and uses of the word equity, from justice and fairness to property and ownership. Find synonyms, examples, word history, and related phrases of equity.
Learn the meaning of equity in finance, economics, law and business English. Find out how equity relates to the value, fairness and ownership of a company, property or system.
- What Is Equity?
- How Shareholder Equity Works
- Formula and How to Calculate Shareholders' Equity
- What The Components of Shareholder Equity Are
- Example of Shareholder Equity
- Other Forms of Equity
- Private Equity
- Home Equity
- Brand Equity
- Equity vs. Return on Equity
- GeneratedCaptionsTabForHeroSec
Equity, referred to as shareholders' equity (or owners' equity for privately held companies), 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 in the case of liquidation. In the case of acquisition, it is the value of company sales minus...
By comparing concrete numbers reflecting everything the company owns and everything it owes, the "assets-minus-liabilities" shareholder equity equation paints a clear picture of a company's finances, easily interpreted by investors and analysts.Equity is used as capital raised by a company, which is then used to purchase assets, invest in projects,...
The following formula and calculation can be used to determine the equity of a firm, which is derived from the accounting equation: Shareholders’ Equity=Total Assets−Total Liabilities\text{Shareholders' Equity} = \text{Total Assets} - \text{Total Liabilities}Shareholders’ Equity=Total Assets−Total Liabilities This information can be found on the ba...
Retained earnings are part of shareholder equity and are the percentage of net earnings that were not paid to shareholders as dividends. Think of retained earnings as savings since it represents a cumulative total of profitsthat have been saved and put aside or retained for future use. Retained earnings grow larger over time as the company continue...
As part of its 2023 annual report, Apple reported $73.812 billion of shareholder equity. This value was made up of common stock and additional paid-in capital. Of the 50.4 million shares authorized, the company had issued roughly 15.5 million shares. Apple also has several other types of shareholder equity activity. As of September 30, 2023 (the da...
The concept of equity has applications beyond just evaluating companies. We can more generally think of equity as a degree of ownership in any asset after subtracting all debts associated with that asset. Below are several common variations on equity: 1. A stockor any other security representing an ownership interest in a company. 2. On a company's...
When an investment is publicly traded, the market value of equity is readily available by looking at the company's share price and its market capitalization. For private entities, the market mechanism does not exist, so other valuation forms must be done to estimate value. Private equity generally refers to such an evaluation of companies that are ...
Home equityis roughly comparable to the value contained in homeownership. The amount of equity one has in their residence represents how much of the home they own outright by subtracting from the mortgage debt owed. Equity on a property or home stems from payments made against a mortgage, including a down payment and increases in property value. Ho...
When determining an asset's equity, particularly for larger corporations, it is important to note these assets may include both tangible assets, like property, and intangible assets, like the company's reputation and brand identity. Through years of advertising and the development of a customer base, a company's brand can come to have an inherent v...
Return on equity (ROE)is a measure of financial performance calculated by dividing net income by shareholder equity. Because shareholder equity is equal to a company’s assets minus its debt, ROE could be considered the return on net assets. ROE is considered a measure of how effectively management uses a company’s assets to create profits. Equity, ...
Equity is the value that would be returned to a company's shareholders if all of the assets were liquidated and all of the debts were paid off. Learn how to calculate equity, its components, and its applications in corporate finance, real estate, and margin trading.
- Jason Fernando
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Learn the meaning of equity in finance, law, and fairness with Cambridge Dictionary. Find out how equity relates to value, shares, property, justice, and more.
Equity can mean the quality of being fair or impartial, a system of jurisprudence based on natural justice, or the value of a property or business beyond debts. Learn more about the different meanings and uses of equity in law, finance, and society.
Equity is the sum of the assets or investments of a business after liabilities have been subtracted.
Learn the meaning of equity in finance, property, law and society from the Oxford Advanced Learner's Dictionary. Find synonyms, pronunciation, pictures and usage notes for equity.
