Ownership equity
(Redirected from Equity (capital))
Ownership equity, commonly known simply as equity, also risk or liable capital, is a financial term for the difference between a company's assets and liabilities — that is, the value that accrues to the owners (sole proprietor, partners, or shareholders).
- In a corporation, it is called shareholders' equity.
- In a bankruptcy court, ownership equity is the last or residual claim against assets, paid only after all other creditors are paid.
- In real estate, equity refers to the difference between the market value of a property and the owner's mortgage debt.
- In Futures, owners interest in an asset, after all liabilities are paid.
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Categories: Economic terms