As an individual, equity is the quality of being fair and impartial, which are terrific attributes of a small business owner. However, in finance a. Equity definition, the quality of being fair or impartial; fairness; impartiality: the equity of Solomon. See more. In accounting, equity (or owner's equity) is the difference between the value of the assets and . Typically, equity holders receive voting rights, meaning that they can vote on candidates for the board of directors (shown on a diversification of the Owner's equity · Shareholders' equity · Equity stock · Equity investments. Notify me of follow-up comments by email. Notify me of new posts by email. Taking money out of a property, or borrowing money against it, is known as equity takeout. Trading goes against basic human nature. Times, Sunday Times For example, if you have a lot of equity in your house you may persuade the lender to add any arrears to the value of the mortgage. Shareholders' equity or stockholders' equity, shareholders' funds, shareholders' capital or similar terms represents the equity of a company as divided among shareholders of common or preferred stock. Under the model of a private limited company , the business and its owners are separate entities, so the business is considered to owe these funds to its owners as a liability in the form of share capital. Related Phrases home equity loan negative equity. How to Read a Financial Statement. Other Economics Terms actuary , compound interest , globalization , indemnity , portfolio , rentier , stagflation , usurer. When a company decides to sell additional shares to new or existing shareholders, this is sometimes called raising equity. In such cases where even creditors could not get enough money to pay their bills, the owner's equity is reduced to zero because nothing is left to reimburse it. Please help improve this article by adding citations to reliable sources.