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.

Related

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

Opposites
capital structure

financial equitydebt

Money owed another

liabilities · debt financing · loans · bonds · leverage

balance sheet position

financial equitynegative equity

Owing more than owned

deficit · insolvency · bankruptcy · underwater · indebtedness

ownership stake

financial equitydivestiture

Disposal of assets

liquidation · selloff

Family

finance, financial, financially, financier, financing, financed, finances, equity, equities

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