what is the definition of equity?

Learn Definition of equity from the DictAbc Dictionary, How to use equity in a Example Sentence.

equity Definition In English

0 the value of a company, divided into many equal parts owned by the shareholders, or one of the equal parts into which the value of a company is divided:
- The rights give holders the opportunity to purchase additional equity interests in the company at a big discount.
- He sold his equity in the company last year.
1 the situation in which everyone is treated fairly and equally:
- a society based on equity and social justice
2 the money value of a property or business after debts have been subtracted:
- [ U ] How much equity do you have in your home?
3 equal treatment; fairness
4 the capital that a company gets from selling its shares rather than borrowing money:
- an equity holder/investor/strategist
- issue/raise equity The company is planning to raise equity of £1.1 billion to fund growth plans.
- Nearly 329 million shares, or 18% of the equity, will go on sale to investors.
- Many internet firms have financed themselves with equity.
5 the value of a property for the owner after it has been sold and any loan paid back:
- have/lose/release equity (in sth) According to research, retired homeowners have nearly £700 billion of equity in their homes.
- in equity An owner with a house worth $100,000 and an $80,000 mortgage has $20,000 in equity.
- The equity in your home can be a cheap source of cash.

The firm may chose to invest the contributions in equities.
They argue that the key to protecting retirement wealth against volatility is diversification, and equities continue to remain an important component of retirement portfolios.
Between 1982 and 2000, capital gains on equities held by defined benefit plans amounted to $1.4 trillion.
The gain on pension equities then causes a further reduction in pension contributions and the process repeats.
If, for example, social security funds were invested wholly in equities, presumably they would have to be purchased from the major holders of such equities.
Although pension funds were allowed to invest in equities after 1985, the allocation remained less than 10 % until 1989.
The asset mix of savings (between bonds and equities) can be adjusted each period.
Meanwhile, unlike traditional policies, variable policies imply active investment in equities, real estate and international investments which may be expected to keep pace with inflation.