Equity

Equity may have one of the following meanings, depending the context of the term:

1. paid-in capital plus retained earnings in a businesss entity, like a corporation. 2. the extent of a person's beneficial ownership interest possessed by shareholders in an asset, like a corporation-stock as opposed to bonds.

This is equivalent with the value of the asset minus the liability to which the asset is subject.

Equity Capital in the U.S. and other Developed Countries International Tax Meaning

A method of financing a business where money is received by the issuance of shares in the enterprise.