Equities
The term equities can refer to two different concepts: 1. Equity as Shares/Stocks: Equities represent the shares held by shareholders in a company. These shares give the holders a residual ownership stake in the company, meaning they own a portion of the company's assets and earnings. Equities are typically traded on stock exchanges. 2. Equity in Case of Liquidation: In the event of a company’s liquidation, equities refer to the amount that shareholders will receive after the company’s debts are paid. The equity is calculated by subtracting the company's total debt from its total assets. This remaining value is distributed among shareholders, but only after all creditors have been satisfied.
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