noun eq·ui·ty \ˈe-kwə-tē\

: fairness or justice in the way people are treated

finance : the value of a piece of property (such as a house) after any debts that remain to be paid for it (such as the amount of a mortgage) have been subtracted

: a share in a company : a share of a company's stock

plural eq·ui·ties

Full Definition of EQUITY

a :  justice according to natural law or right; specifically :  freedom from bias or favoritism
b :  something that is equitable
a :  a system of law originating in the English chancery and comprising a settled and formal body of legal and procedural rules and doctrines that supplement, aid, or override common and statute law and are designed to protect rights and enforce duties fixed by substantive law
b :  trial or remedial justice under or by the rules and doctrines of equity
c :  a body of legal doctrines and rules developed to enlarge, supplement, or override a narrow rigid system of law
a :  a right, claim, or interest existing or valid in equity
b :  the money value of a property or of an interest in a property in excess of claims or liens against it
c :  a risk interest or ownership right in property
d :  the common stock of a corporation

Examples of EQUITY

  1. In making these decisions we should be governed by the principle of equity.
  2. We've been slowly paying off our mortgage and building up equity in our house.

Origin of EQUITY

Middle English equite, from Anglo-French equité, from Latin aequitat-, aequitas, from aequus equal, fair
First Known Use: 14th century

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer


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