Golden Recursion Inc. logoGolden Recursion Inc. logo
Advanced Search
Equity (finance)

Equity (finance)

Difference between the value of the assets/interest and the cost of the liabilities of something owned

Equity, typically referred to as shareholders' equity (or owners' equity for privately held companies), represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation. In the case of acquisition, it is the value of company sales minus any liabilities owed by the company not transferred with the sale.

In addition, shareholder equity can represent the book value of a company. Equity can sometimes be offered as payment-in-kind. It also represents the pro-rata ownership of a company's shares.

Equity can be found on a company's balance sheet and is one of the most common pieces of data employed by analysts to assess a company's financial health.

Timeline

Further Resources

Title
Author
Link
Type
Date

News

Search on Google
Search on Bing
Golden logo
By using this site, you agree to our Terms & Conditions.