Equity

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Dictionary Says

Definition of 'Equity '

1. A stock or any other security representing an ownership interest.

2. On a company's balance sheet, the amount of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses). Also referred to as "shareholders' equity".

3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokerage.

4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.

5. In terms of investment strategies, equity (stocks) is one of the principal asset classes. The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset allocation planning to structure a desired risk and return profile for an investor's portfolio. 
Investopedia Says

Investopedia explains 'Equity '

The term's meaning depends very much on the context. In finance, in general, you can think of equity as ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash. Stocks are equity because they represent ownership in a company.

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'Equity'

  • The Debt To Equity Ratio

    http://www.investopedia.com/video/play/debt-to-equity-ratio
    The debt to equity ratio identifies companies that are highly leveraged and therefore
    a higher risk for investors. ... Videos /. The Debt To Equity Ratio. ...

  • A Primer On Private Equity

    http://www.investopedia.com/articles/financial-theory/11/private-equity-primer.asp
    Private equity investing is becoming more accessible for individual investors;
    find out how you can get involved. ... A Primer On Private Equity. ...

  • Return On Equity (ROE)

    http://www.investopedia.com/video/play/return-on-equity
    Return on equity is one of the basic metrics used to evaluate a company's
    stock. Find out ... Videos /. Return On Equity (ROE). Next video ...

  • Evaluating Green Equity Investments

    http://www.investopedia.com/articles/stocks/07/green-equity.asp
    Evaluating Green Equity Investments. March 17 2012 | Filed Under » ETFs, Investment,
    Mutual Funds, Stocks. Climate change is an environmental ...

  • Private Equity A Trendsetter For Stocks

    http://www.investopedia.com/articles/07/private-equity.asp
    Private Equity A Trendsetter For Stocks. ... In this article, we'll show you
    how private equity sets the trend for stocks everywhere. ...

  • Learn The Lingo Of Private Equity Investing

    http://www.investopedia.com/articles/stocks/09/abcs-of-private-equity.asp
    Because of the non-public nature of private equity, it can be difficult to the
    learn the lingo. ... Learn The Lingo Of Private Equity Investing. ...

  • Long-Term Investing With Equity Index CDs

    http://www.investopedia.com/articles/bonds/09/equity-index-cds.asp
    Equity Index CDs are perfect for investors who don't mind hanging in for the long
    term. Continue to Site ». ... Long-Term Investing With Equity Index CDs. ...

  • Equity Valuation In Good Times And Bad

    http://www.investopedia.com/articles/fundamental-analysis/09/equity-valuation-good-bad.asp
    ... Equity Valuation In Good Times And Bad. ... Net income and shareholder equity
    are GAAP measurements, thus ROE is an accounting function. ...

  • What Is Private Equity?

    http://www.investopedia.com/articles/financial-careers/09/private-equity.asp
    What Is Private Equity? March 03 2009 | Filed ... Let's delve a little deeper
    into private equity firms. (Smaller investors have found ...

  • 5 Equity Derivatives And How They Work

    http://www.investopedia.com/articles/optioninvestor/10/equity-derivatives.asp
    5 Equity Derivatives And How They Work. ... Equity derivatives offer retail investors
    another way to participate in the price action of an underlying security. ...

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