Equity has multiple meanings, depending on the context in which it is used.

Here are a few

common definitions:

1. In finance, equity refers to the ownership interest that shareholders have in a

company. Shareholders own equity in a company in the form of shares of stock.
Equity represents the residual value of a company after all of its liabilities have
been paid off.
2. In accounting, equity is a section of the balance sheet that shows the value of a
company's assets minus its liabilities. This is sometimes referred to as
"shareholders' equity" or "owner's equity" because it represents the portion of a
company's assets that are owned by the shareholders.
3.