EQUITY

Equity

In accounting and finance, equity is the residual claimant or interest of the most junior class of investors in assets, after all liabilities are paid; if liability exceeds assets, negative equity exists. In an accounting context, shareholders' equity represents the remaining interest in the assets of a company, spread among individual shareholders of common or preferred stock; a negative shareholders' equity is often referred to as a positive shareholders' deficit.

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equity

Noun

  1. Ownership, especially in terms of net monetary value of some business.
  2. A legal tradition that deals with remedies other than relief, such as injunctions, divorces and similar actions.
  3. Value of property minus liens or other .
  4. Ownership interest in a company as determined by subtracting liabilities from .
  5. Justice, impartiality or fairness.


The above text is a snippet from Wiktionary: equity
and as such is available under the Creative Commons Attribution/Share-Alike License.

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