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What Is Equity?

Equity is a measure of how much ownership a person or company has in a particular business. It is important because it affects how much money a person or company can earn, and how much control they have over that company.

Equity & Business

Equity is a key part of any business. It represents the value of a company’s assets, including its stock and its property. When a company is profitable and its stock is trading at a high price, that company has a lot of equity and the people that own parts of the company, shareholders, are very happy. However, if a company’s stock price declines or it goes bankrupt, equity holders will lose their money and any other asset they invested in the company.

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