equity

noun

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eq·ui·ty | \ ˈe-kwə-tē

plural equities

Definition of equity

1a : justice according to natural law or right specifically : freedom from bias or favoritism

b : something that is equitable

2a : the money value of a property or of an interest in a property in excess of claims or liens against it

b : the common stock of a corporation

c : a risk interest or ownership right in property

d : a right, claim, or interest existing or valid in equity

3a : 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

Synonyms & Antonyms Did you know? Example Sentences Phrases Containing equity Learn More About equity

Did you know?

Equity usually appears in courts of law as a term related to justice or proportional fairness, or in financial offices to property or one's share of a company. The derivative root of the noun, which gained stability in the English language during the 1300s, is Latin aequus, meaning "even," "fair," or "equal"; however, to be fair, it was introduced to English by the French, whose adaptation of the Latin was equité. The French word has clear legal connotations; it means "justice" or "rightness," and those meanings, plus a splash of "fairness," carried over to the English word equity. Noah Webster, himself a lawyer, notes the legal term equity of redemption in his 1828 dictionary defining it as "the advantage, allowed to a mortgager, of a reasonable time to redeem lands mortgaged, when the estate is of greater value than the sum for which it was mortgaged." This use led to the modern financial meanings of equity: "the value of a piece of property after any debts that remain to be paid are subtracted" and "a share in a company or of a company's stock."

Examples of equity in a Sentence

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

Recent Examples on the Web Japan responded with a candid admission of how far their country lags behind on gender equity issues. — Melissa Mahtani, CNN, 17 Mar. 2022 And, rather than worrying that rate hikes would affect equity values, investors may just be relieved that the Federal Reserve is taking action to fight the highest level of inflation in decades. — Nicholas Gordon, Fortune, 17 Mar. 2022 The brand has long advocated for inclusion and equality in sports, and recently made an equity investment in the WNBA to grow the league with fresh talent and create more visibility for its female athletes. — Rosa Sanchez, Harper's BAZAAR, 17 Mar. 2022 Also part of the plan is $11.2 million in equity for the recovery housing portion of the new building, which would be funded by Low Income Housing Tax Credits sold to investors via the Ohio Housing Finance Agency. — Steven Litt, cleveland, 16 Mar. 2022 McCrory closed his remarks by asking his Senate colleagues to support the settlement, but also to continue dialogue surrounding education and equity. — Seamus Mcavoy, courant.com, 16 Mar. 2022 Consumers who are carrying balances on their credit cards and home equity lines of credit will see their rates start to move up within the next one or two statement cycles. — Susan Tompor, Detroit Free Press, 16 Mar. 2022 It’s expected to ripple through the economy, pushing up rates for credit cards, home equity lines of credit and adjustable-rate mortgages, among other loans. — Paul Davidson, USA TODAY, 16 Mar. 2022 Other types of credit with adjustable rates are also likely to see an impact, such as home equity lines of credit and adjustable-rate mortgages, which are also based on the prime rate. — Aimee Picchi, CBS News, 16 Mar. 2022 See More

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'equity.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Dictionary Entries Near equity

equitime point

equity

equity capital

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Last Updated

20 Mar 2022

Cite this Entry

“Equity.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/equity. Accessed 21 Mar. 2022.

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More Definitions for equity

equity

noun

eq·ui·ty | \ ˈe-kwə-tē

plural equities

Legal Definition of equity

1a : justice according to fairness especially as distinguished from mechanical application of rules prompted by considerations of equity comity between nations, and equity require it to be paid for— F. A. Magruder

b : something that is equitable : an instance of equity the inequities produced by the system are outnumbered by the equities

2a : a system of law originating in the English chancery and comprising a settled and formal body of substantive and procedural rules and doctrines that supplement, aid, or override common and statutory law the judicial power shall extend to all cases, in law and equity, arising under this Constitution — U.S. Constitution art. III — see also chancery — compare common law, law

Note: The courts of equity arose in England from a need to provide relief for claims that did not conform to the writ system existing in the courts of law. Originally, the courts of equity exercised great discretion in fashioning remedies. Over time, they established precedents, rules, and doctrines of their own that were distinct from those used in the courts of law. Although for a time the courts of equity rivaled the law courts in power, the law courts maintained an advantage partly as a result of forcing the equity courts to hear only those cases for which there was no adequate remedy at law. The courts of law and equity were united in England in 1873. Courts of equity also developed in the United States, but in most states and in the federal system courts of law and courts of equity have been joined. The courts apply both legal and equitable principles and offer both legal and equitable relief, although generally equitable relief is still granted when there is no adequate remedy at law.

b : the principles that developed in the courts of equity : justice in accordance with equity equity treats a devisee who procures a will by fraud as a constructive trustee— W. M. McGovern, Jr. et al. also : justice in accordance with natural law

c : a court of equity sat alone for some time in equity— O. W. Holmes, Jr.

3 : a body of doctrines and rules developed to enlarge, supplement, or override any narrow or rigid system of law

4a : a right, claim, or interest existing or valid in equity

b : the money value of a property or of an interest in property in excess of any claims or liens (as mortgage indebtedness) against it

c : a risk interest or ownership right in property specifically : the ownership interests of shareholders in a company

d : the common stock of a corporation — compare asset, debt