Equity

1.

Law.

A legal system that resolves disputes between persons by resort to principles of fairness and justness.

2.

The capital of a firm invested by those accepting the greatest degree of risk, for example the holders of ordinary shares (also known as common stock or common equity) in a company.

3.

Securities representing the rights of the risk capital investors in 2. above.

4.

The net value of an asset, after deducting debt relating to it or secured on it.

See also

• An introduction to equity capital
• Blue chip
• Capital structure
• Common law
• Common stock
• Compound instrument
• Debt
• Debt for equity swap
• Dividend growth model
• Entity
• Equity cost of capital
• Equity instrument
• Equity investments
• Equity swap
• Kay Review
• Liabilities and equity
• Market/book ratio
• MCT
• Mezzanine
• Ordinary shares
• Private equity
• Return on equity
• Share
• Shareholders’ funds
• Stock
• Total Loss Absorbing Capacity
• Total return swap