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equity

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equity

difference between the value of the assets/interest and the cost of the liabilities of something owned

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About equity

In finance, equity is an ownership interest in property that may be subject to debts or other liabilities. Equity is measured for accounting purposes by subtracting liabilities from the value of the assets owned. For example, if someone owns a car worth $24,000 and owes $10,000 on the loan used to buy the car, the difference of $14,000 is equity. Equity can apply to a single asset, such as a car or house, or to an entire business. A business that needs to start up or expand its operations can sell its equity in order to raise cash that does not have to be repaid on a set schedule.

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Not who you're looking for? Others named equity: British trade union · unincorporated community in Washington County, Ohio · economic concept of fairness · 2016 American film directed by Meera Menon

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are net assets the same as equity?

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