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Finance Dictionary and Glossary of Investment Terms
1. A term describing stock, or any security, representing an ownership interest.2. On the balance sheet, equity refers to the value of the funds contributed by the owners (the stockholders) plus the retained earnings (or losses).3. In the context of margin trading, equity is the value of securities minus what has been borrowed from the brokerage.
Your equity is the market value of your property, less the amount you owe on it and must repay when you sell.
Ownership interest in a firm. Also, the residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. In real estate, dollar difference between what a property could be sold for and debts claimed against it. In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. Equity is also shorthand for stock market investments.
The ownership interest of stockholders in a company. Also, the excess of the market value of securities over debit balances in a margin account. (See credit and debit balance, margin)