Equity

Represents ownership interest in a firm. Also the residual dollar value of a futures trading account, assuming its liquidation at the going market price. The New York Times Financial Glossary

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equity eq‧ui‧ty [ˈekwti] noun equities PLURALFORM
1. [uncountable] FINANCE the capital that a company has from shares rather than from loans:

• The CEO has been moving toward the use of equity rather than debt.

• The strong stock market will encourage more companies to use equity to finance acquisitions.

• SAS will need to raise additional equity to complete the SKr20 billion of aircraft purchases it plans.

• They plan to raise $100m by releasing at least 5% of equity in the company.

— see also brand equity, external equity, return on equity
ˈbook ˌequity [uncountable] ACCOUNTING FINANCE
the value of a company's shares, as shown in its statement of its financial position at the end of a particular period of time:

• The write-down of oil and gas assets will reduce its shareholders' book equity by 50%.

deˌferred ˈequity [uncountable] ACCOUNTING FINANCE
money that a company borrows, for example in the form of convertible loan stock that can later be exchanged for shares
ˌnegative ˈequity
1. [uncountable] FINANCE when an asset, usually property, bought by a borrower with a loan is worth less than the loan remaining to be paid:

• the growing number of home owners with negative equity

2. [uncountable] ACCOUNTING FINANCE when a company's liabilities are more than its assets:

• The level of bad debts at some Thai banks may mean that some have negative equity.

ˈowners' ˌequity [uncountable] ACCOUNTING FINANCE
the difference between the value of a company's assets and its liabilities other than those to shareholders. In principle, this is what the company would be worth to shareholders if it stopped trading, its assets were sold, and its debts paid
ˌprivate ˈequity [uncountable] FINANCE
shares in new or very small companies, which are not available for people to buy on the stock market :

• Montagu is a leading private equity investor in the European market.

ˈshareholder ˌequity also shareholders' equity [uncountable] ACCOUNTING FINANCE
another name for owners' equity:

• If News Corp revalues its assets by A$1 billion, that will increase shareholders' equity to A$8.2 billion.

ˈstockholder ˌequity also stockholders' equity [uncountable] ACCOUNTING FINANCE
another name for owners' equity
ˈstub ˌequity [uncountable] ACCOUNTING FINANCE
the share capital that is left in a company after it has been financially reorganized using a large amount of debt borrowed against the company's assets
ˌtier ˈ1 ˌequity [uncountable] FINANCE
shareholders' equity in a bank. By law, banks must have a minimum amount of tier 1 equity in relation to other forms of capital:

• The bank currently has $8.894 billion in core equity capital, giving it a 4.08% tier 1 equity capital ratio.

2. equities [plural] FINANCE trading in companies' shares on a stockmarket, rather than trading on other types of market:

• investors seeking to place funds in equities

• Milan equities finished mostly higher.

3. [uncountable] FINANCE in mortgage or hire purchase lending, the amount that would be left for the borrower if the property or asset was sold and the remaining loan repaid:
tier 1 equity in

• They have seen the equity in their home rise tenfold.

4. [uncountable] LAW the principle that a fair judgement must be made where the existing laws do not provide a clear answer in a particular case:

• The courts have been willing to look at the settlement of arguments on the basis of equity rather than strict legal principle.

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   The shareholders' stake in a company. Equity markets are the markets in which shares or stocks are issued and traded.

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equity UK US /ˈekwɪti/ noun [U]
FINANCE, STOCK MARKET the capital that a company gets from selling its shares rather than borrowing money: »

Many internet firms have financed themselves with equity.

»

Nearly 329 million shares, or 18% of the equity, will go on sale to investors.

issue/raise equity »

The company is planning to raise equity of £1.1 billion to fund growth plans.

»

an equity holder/investor/strategist

(US ALSO home equity) FINANCE, PROPERTY the value of a property for the owner after it has been sold and any loan paid back: »

The equity in your home can be a cheap source of cash.

in equity »

An owner with a house worth $100,000 and an $80,000 mortgage has $20,000 in equity.

have/lose/release equity (in sth) »

According to research, retired homeowners have nearly £700 billion of equity in their homes.

LAW a system of English law that developed from the 17th to the 19th centuries that can still be used to judge a case fairly in a court of law if the rules of common law are not suitable
See also BOOK EQUITY(Cf. ↑book equity), BRAND EQUITY(Cf. ↑brand equity), COST OF EQUITY(Cf. ↑cost of equity), DEBT/EQUITY RATIO(Cf. ↑debt/equity ratio), DEBT-EQUITY SWAP(Cf. ↑debt-equity swap), DEBT-FOR-EQUITY(Cf. ↑debt-for-equity), DEFERRED EQUITY(Cf. ↑deferred equity), EMPLOYMENT EQUITY(Cf. ↑employment equity), EXTERNAL EQUITY(Cf. ↑external equity), HORIZONTAL EQUITY(Cf. ↑horizontal equity), INTERNAL EQUITY(Cf. ↑internal equity), NEGATIVE EQUITY(Cf. ↑negative equity), OWNERS' EQUITY(Cf. ↑owners' equity), PRIVATE EQUITY(Cf. ↑private equity), RETURN ON EQUITY(Cf. ↑return on equity), SHAREHOLDERS' EQUITY(Cf. ↑shareholders' equity), STOCKHOLDER EQUITY(Cf. ↑stockholder equity), STUB EQUITY(Cf. ↑stub equity), SWEAT EQUITY(Cf. ↑sweat equity), TIER 1 CAPITAL(Cf. ↑Tier 1 capital), VERTICAL EQUITY(Cf. ↑vertical equity)

Financial and business terms. 2012.

Synonyms:
, / , , , , , , , / , (as distinguished from conformity to mere enactments or statutes), (as against its mere letter) /


Look at other dictionaries:

  • equity — eq·ui·ty / e kwə tē/ n pl ties [Latin aequitat aequitas fairness, justice, from aequus equal, fair] 1 a: justice according to fairness esp. as distinguished from mechanical application of rules prompted by considerations of equity comity between… …   Law dictionary

  • Equity — can refer to:General* Equity (law), a branch of jurisprudence in common law jurisdictions * In many political and legal systems, a concept encompassing ideals of justice (fairness) and/or equality * Equality, the philosophical ideal of valuing… …   Wikipedia

  • Equity — Eq ui*ty, n.; pl. {Equities}. [F. [ e]quit[ e], L. aequitas, fr. aequus even, equal. See {Equal}.] 1. Equality of rights; natural justice or right; the giving, or desiring to give, to each man his due, according to reason, and the law of God to… …   The Collaborative International Dictionary of English

  • equity — [ek′wit ē] n. pl. equities [ME equite < OFr équité < L aequitas, equality < aequus: see EQUAL] 1. fairness; impartiality; justice 2. anything that is fair or equitable ☆ 3. the value of property beyond the total amount owed on it in… …   English World dictionary

  • Equity —   [ ekwɪtɪ; englisch »Billigkeit«] die, , Recht: 1) im angloamerikanischen Recht Bezeichnung für Regeln zur Ergänzung des Common Law mit dem Ziel des Ausgleichs von Härten, ähnlich der Billigkeitsklausel in § 242 BGB; ursprünglich… …   Universal-Lexikon

  • Equity — bezeichnet Equity (Recht), im angloamerikanischen Recht Regeln zur Ergänzung des Common Law Eigenkapital, ein Teil der Passivseite der Bilanz Diese Seite ist eine Begriffsklärung zur Unterscheidung mehrerer mit demselben Wort …   Deutsch Wikipedia

  • Equity — остаточная стоимость счета по фьючерсным сделкам, если предположить его ликвидацию по текущей рыночной цене. См. также: Расчетные палаты Финансовый словарь Финам …   Финансовый словарь

  • equity — The value of a debtor s interest in property that remains after liens and other creditors interests are considered. (Example: If a house valued at $60,000 is subject to a $30,000 mortgage, there is $30,000 of equity.) (BankruptcyAction.com) This… …   Glossary of Bankruptcy

  • Equity — 1.) a ↑trade union in the UK for actors and actresses in film, theatre, TV, and radio 2.) a ↑trade union in the US for actors and actresses who perform in the theatre. Its full name is the Actor s Equity Association …   Dictionary of contemporary English

  • equity — [n1] impartiality disinterestedness, equitableness, even handedness, fair mindedness, fairness, fair play, honesty, integrity, justice, justness, nonpartisanship, piece, reasonableness, rectitude, righteousness, square deal*, uprightness;… …   New thesaurus

  • equity — early 14c., from O.Fr. equite (13c.), from L. aequitatem (nom. aequitas) equality, conformity, symmetry, fairness, from aequus even, just, equal (see EQUAL (Cf. equal)). As the name of a system of law, 1590s, from Roman naturalis aequitas, the… …   Etymology dictionary

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