Equity
Equity refers to ownership in a company, typically in the form of stocks or shares. When someone owns equity in a company, they hold a stake or ownership in that company, meaning they share in its profits and have voting rights in corporate decisions. In a broader sense, equity can also refer to the residual value of a company’s assets after all liabilities are paid off, which shareholders would receive in the event of liquidation. This represents the portion of the company owned by the shareholders after all debts and obligations are settled.
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