What is equity?

Question

What is equity?

Answer 1

I think it's if you have a mortgage, your equity is how much you paid back to the mortgage company?

I just did business studies for 3 years, and i'm ok at it, but thats what i remember anyway.

Answer 2

Equity would be ownership in a particular asset, business, etc.  With regards to investing an individual who is an equity investor invests in the stock of a company which represents an ownership interest, as opposed to an investor who invests in bonds which would essentially make that investor a lender of funds to a firm.

Answer 3

EQUITY MEANS SHARE CAPITAL

SHARE CAPITAL MEANS AMOUNT INVESTED IN THE BUSINESS

AND EQUITY/SHARE  MARKET IS THAT  WHERE CAPITAL OF THE COMPANIES IS BEING TRADED

Answer 4

Working in the banking industry it would mean the difference between what your house is worth and what you owe, ie the mortgage.

so if your house is worth 300,000

and your mortgage is      100,000

the equity is                       200,000

Answer 5

Equity may be refering to stocks as well i.e Equity stocks or securities as the known in South Africa