Equity

Equity – The meaning is dependent on the context in which the term is used:
1. A stock (share) or any other security representing an ownership interest. See Stock
2. On a company’s balance sheet, the amount of funds contributed by the owners (the stockholders) plus the retained earnings (or losses). See Shareholders equity
3. In the context of margin trading, the value of securities in a margin account minus what has been borrowed from the brokering firm
4. In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage, if applicable. It is the amount that the owner would receive after selling a property and paying off a mortgage
5. In terms of investment strategies, equity (stocks) is one of the principal asset classes; the other two are fixed-income (bonds) and cash/cash-equivalents. These are used in asset-allocation/" data-gt-translate-attributes='[{"attribute":"data-cmtooltip", "format":"html"}]' tabindex='0' role='link'>asset allocation planning to structure a desired risk and return profile for an investor’s portfolio.