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
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