Ownership equity

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 proprietor, 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
• Stock

External links

• Equity