Ownership equity - Definition and Overview

• Ownership equity, commonly known simply as equity, also risk or liable capital, is a financial term for the difference between a company's assets and liabilities -- that is, the value that accrues to the owners (sole proprieter, partners, or shareholders).

• In a corporation, it is called shareholders' equity.

• In a bankruptcy court, ownership equity is the last or residual claim against assets, paid only after all other creditors are paid.

• In real estate, equity refers to the difference between the market value of a property and the owner's mortgage debt.

• In Futures, owners interest in an asset, after all liabilities are paid.

See also

• Accounting
• Bond
• Equity
• Equity market
• Real estate investment trust

External links

Equity (http://www.tradingeducators.com/resources/glossary_d.htm#E/)