Definition
Equity represents the ownership value in an asset, such as a company, after subtracting liabilities. In a company, equity is the residual interest in its assets after all debts have been paid. Equity=Assets?Liabilities
Related Services
Investment advisory, corporate finance, and shareholder equity management help businesses and individuals understand equity value.
Problem and Application
Equity serves as the foundation for ownership stakes and financing, but fluctuations in asset value or debt levels can significantly impact its worth.
Conclusion
Equity is central to ownership and financing decisions but requires careful management to maximize returns and minimize risk.
