English · Work & Business

equity

/ˈɛk.wɪ.ti/

[/ˈɛk.wɪ.ti/]

ownership value

Advancednoun

Definition

The value of ownership in an asset or company after debts are subtracted.

Example

Early employees received equity that became valuable when the company finally went public.

Early employees received equity that became valuable when the company finally went public.

Etymology

From Latin 'aequitas' (fairness); the financial-ownership sense is established.

How & Where It’s Used

Used in finance, startups, and law.

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