Equity

Business / Taxes / Equity: In the broadest sense, equity means ownership. If you own stock, you have equity in, or own a portion — however small — of the company that issued the stock. Having equity is the opposite of owning a bond or commercial paper, which is a debt the company must repay to you. Equity also means the difference between an asset's current market value — the amount it could be sold for — and any debt or claim against it. For example, if you own a home currently valued at $300,000 but still owe $200,000 on your mortgage, your equity in the home is $100,000. The same is true if you own stock in a margin account. The stock may be worth $50,000 in the marketplace, but if you have a loan balance of $20,000 in your margin account because you financed the purchase, your equity in the stock is $30,000.

Other Words for Equity

Equity Noun Synonyms: fairness, impartiality, even-handedness, justice, fair play, objectivity, disinterest, fair-mindedness, equitableness, open-mindedness, disinterestedness, neutrality, tolerance, judiciousness, right-mindedness, high-mindedness
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Debt To Equity Ratio

Business / Finance / Debt To Equity Ratio: A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called MORE

Return On Equity (ROE)

Business / Finance / Return On Equity (ROE): Net income divided by equity. This ratio is often used as a measure of the return on funds invested in a business. MORE

Equity Fund

Business / Taxes / Equity Fund: Equity funds invest primarily in stock. The stock a fund buys — whether in small, up-and-coming companies or large, well-established firms — depends on the fund's investment objectives and managem MORE

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