What is Equity?
A definition of Equity
“Equity refers to the ownership value of an asset after all debts and liabilities associated with it are paid. It’s a critical component in evaluating a company’s financial health and investment potential.”

Business Glossary > What is Equity?
Examples of Equity in a Sentence:
Investors consider equity important when evaluating a company.
She increased her equity by buying additional shares.
The equity of the house rose as the mortgage was paid down.
Why is Equity Important in Business?
Understanding equity is essential for investors and business owners, as it represents the value shareholders might receive upon liquidation. It is crucial for assessing a company’s financial stability and making informed investment decisions.
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Associated Terms
Here are some associated business terms and synonyms for “Equity”:
- Shareholders’ Equity
- Net Worth
- Ownership Value
- Book Value
Apple Inc. Equity
Apple Inc. is heavily analyzed by investors who evaluate its equity to determine the company’s financial health. The high value of Apple’s equity reflects its strong market position and investors’ confidence.
Final Notes on Equity
Equity is crucial for determining a company’s value and the potential return for investors. It’s important to consider factors like debt levels and asset valuation when assessing equity.
This has been a definition of Equity meaning.
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