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Finance and accounting concept. Equity represents any of three separate but related values: the money value of a property or of an interest in a property in excess of claims or liens against it; a risk interest or ownership right in property; and the common stock of a corporation. In corporate finance, a basic equation holds that a company's total assets minus total liabilities equals total owners' equity.
This entry comes from Encyclopædia Britannica Concise. For the full entry on equity, visit Britannica.com.