equity investment & finance definition
- Stock,
either common or preferred.
- The
difference between the value of a house, or other real estate, and the amount
owed on the mortgage.
- An
ownership stake in a partnership or joint venture.
See equity in Wall Street Words
- In a brokerage account, the market value of securities minus the amount borrowed. Equity is particularly important for margin accounts, for which minimum standards must be met.
- Stock, both common and preferred. For example, an investor may prefer investing in equities instead of in bonds. Also called equity security.
- In accounting, funds contributed by stockholders through direct payment and through retained earnings. See also owners' equity.
Learn more about equity
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