financial equity
Net asset worth
Financial equity is the value of ownership in an asset after subtracting what's owed on it.
If your house is worth $400,000 and you owe $250,000 on the mortgage, you have $150,000 in equity.
For businesses, equity represents shareholders' ownership stake—total assets minus total liabilities.
They built equity in the company over twenty years.
Home equity can be borrowed against; stock equity can be sold.
- net worthAssets less debts
- shareholder valueEquity investor financial returns
- stock optionsContracts to purchase shares
- venture capitalStartup growth financing
- book valueAsset minus accumulated depreciation
retained earnings · skin in the game · savings · nest egg · liquidity · wealth distribution · wealth gap · economic justice · trading floor · closing bell · investments · common shares · dividends · retirement accounts · preferred shares · living wage · credit score · market capitalization
financial equitydebt
Money owed another
liabilities · debt financing · loans · bonds · leverage
financial equitynegative equity
Owing more than owned
deficit · insolvency · bankruptcy · underwater · indebtedness
finance, financial, financially, financier, financing, financed, finances, equity, equities