Equity

Equity, in financial terms, refers to the ownership interest or residual value that remains in a company after deducting its liabilities from its assets. It represents the portion of a company’s assets that belongs to its owners or shareholders. Essentially, equity is the value that shareholders hold in a company, and it can be thought of as the difference between a company’s total assets and its total liabilities. Equity provides a measure of the company’s net worth and is a key component of the company’s balance sheet. It can also be referred to as “shareholders’ equity” or “stockholders’ equity.”