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equity

equity

173 5.4
The value of what you own in a house or company after you pay off debts
  • noun
  • /ˈɛkwɪti/
  • Specialized
translation icon : patrimonio neto
  • Would you like to lower your monthly mortgage payments or use the equity in your home to consolidate your credit card or other debts?
  • private equity
  • equity investment
  • invest in equities

That's how you make instant equity in retail.

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Examples

  • We could sell a share of equity through a public stock offering.

  • Get a home equity loan, start looking into real estate.

  • The investors have no equity in this deal at all.

  • Well, you have equity in your home, right?

  • My clients are selling for four, leaving half a million in equity.

  • We insist on management having an equity stake in the business.

    Academic text (1999)
  • I cashed in my equity to build this new life for us.

  • Under this agreement, each company holds an equity stake, with Conoco holding a majority position.

    Academic text (1999)
  • Many of Lindholm's customers own equity in Minnesota Corn Processors, a farmer-owned co-op.

    Academic text (1999)
  • You can improve your financial situation by increasing the equity in your home over time.

Synonyms

stock
vsequity
3.5

A part of a company that people buy and sell

is the total value left after debts are subtracted not just one share
ownership
vsequity
187 2.5

The legal right to have and control something like a house

is about the monetary value remaining after debts not merely the legal right
owner's equity
vsequity
  • Specialized
7.0

The amount of value the owner has in a business after debts are paid

is used more broadly for value in property and other assets not just businesses

Compounds

home equity loan
  • Specialized
6 3.7

A loan that uses the value of your house to get money for big expenses

sweat equity
  • Jargon
2 6.7

Value you earn by working on a house or business yourself

equity credit line
  • Specialized
6.8

A loan that lets you borrow money against the value of your home

home equity credit
  • Specialized
5.6

A loan that uses the value of your home as security for big costs

owner's equity
  • Specialized
7.0

The amount of value the owner has in a business after debts are paid

How Much

controlling interest
  • Specialized
7 3.5
equity
  • Specialized
173 5.4

Surface Forms

equity singular
equities plural

Morphology

equity = equal (opaque) = equit + ity

Although historically related to 'equal,' the financial sense ('value or ownership after debts') is a specialised legal/financial meaning not directly inferable from 'equal' by an average B1 learner.

Etymology

Equity comes from the Latin words aequitas and aequus, which mean 'equal' or 'fair'. Long ago it meant a 'fair share', so in money and property it now means the part that really belongs to you after debts are taken away.