fundamentals
equity
The value of ownership in an asset or company after all debts and liabilities have been deducted.
Example
"After paying down the mortgage for 10 years, they had built significant equity in their home."
💡 Memory Tip
EQUI-ty — equi means equal. Equity is your equal share of what's left after debts.
Etymology
From Latin 'aequitas' meaning 'fairness, equality' — your fair share of ownership.
Common Misspellings
equittyequetyequiityequaty
Related Terms
See Also
ownership