equity
noun
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Definition of equity
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Synonyms & Antonyms for equity
Synonyms
detachment, disinterest, disinterestedness, evenhandedness, fair-mindedness, fairness, impartiality, justice, neutralism, neutrality, nonpartisanship, objectiveness, objectivity
Antonyms
bias, favor, favoritism, nonobjectivity, one-sidedness, partiality, partisanship, prejudice
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Examples of equity in a Sentence
Recent Examples on the Web
Because housing is traditionally less volatile than equities, the compounding returns end up significantly higher over time. — Michael Taylor, ExpressNews.com, "Is owning a home a better investment than stocks?," 30 Aug. 2019 In the latest quarter the firm’s return on tangible equity (RoTE) climbed to 9.7%, roughly what investors regard as par for banks. — The Economist, "Tidjane Thiam’s overhaul of Credit Suisse is paying off," 24 Aug. 2019 When reviewing new applications, the city will probably keep a close eye on three issues — equity, safety and sustainability. — Mallory Moench, SFChronicle.com, "The next great wave of scooters could soon roll into SF," 23 Aug. 2019 Members of the team have filed a lawsuit demanding pay equity with the men’s soccer team, adding fuel to the broader debate over pay disparities that continue to affect millions of American workers. — USA TODAY, "Crystal Cathedral reborn Catholic, 'Conjuring' house, Wiki ‘editathon’: News from around our 50 states," 11 July 2019 Adoring fans packed New York City’s Canyon of Heroes on Wednesday amid a blizzard of confetti to praise the World Cup-winning United States women’s national soccer team as athletic leaders on the field — and as advocates for pay equity off it. — Ali Swenson, baltimoresun.com, "‘I just want to be like them’: Fans celebrate World Cup champion U.S. women’s soccer team at NYC parade," 10 July 2019 The Women's Sports Foundation was founded 45 years ago by tennis legend Billie Jean King and has been focused on issues like pay equity from Day 1. — Rick Maese And Ava Wallace, courant.com, "The US women’s soccer team’s battle for equality is transcending sport," 10 July 2019 After adjusting scores for potential gender gaps in responses, Statista then asked female respondents to rate their employers on items such as parental leave, discrimination and pay equity. — Ben Tobin, The Courier-Journal, "Forbes ranked the best employers for women. How many Louisville companies made the list?," 10 July 2019 Lavelle is likely to be probed on issues ranging from gender equality to pay equity for the U.S. Women's National Soccer Team and women in general, and President Donald Trump. — Pat Brennan, Cincinnati.com, "Rose Lavelle: USWNT World Cup title brings adulation, challenges," 8 July 2019These 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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More Definitions for equity
equity
nounFinancial Definition of equity
What It Is
Put simply, equity is ownership.
In the trading world, equity refers to stock. In the accounting and corporate lending world, equity (or more commonly, shareholders’ equity) refers to the amount of capital contributed by the owners or the difference between a company’s total assets and its total liabilities.
In the real estate world, equity refers to the difference between an asset’s market value and the debt owed on the asset.
How It Works
The two most common types of equities traders encounter are common stock and preferred stock. Share certificates bearing the name of the shareholder, the number of shares, and the name of the company represent these equities, or shares. The number of shares a corporation is authorized to issue is outlined in its corporate charter. When a company decides to sell additional shares to new or existing shareholders, this is sometimes called raising equity.
Although shareholder rights vary by company, one of the most prominent characteristics of equity is that it entitles the owner to vote on certain matters and to do so in proportion to the number of shares he or she owns. The company’s articles of incorporation and bylaws determine the number of votes each share is entitled to.
As you can see in the sample balance sheet for XYZ Company, equity is generally broken out into the par value of the shares outstanding, any additional paid in capital, and any earnings retained by the company.
Why It Matters
Equity holders enjoy voting rights and other privileges that only come with ownership, because equity represents a claim on a proportionate share of a company’s assets and earnings. These claims are generally subordinate to lenders’ claims, but only equity holders can truly participate in and benefit from growth in the value of the enterprise.
Some financial instruments have equity characteristics but are not actually equity. Convertible debt instruments, for example, represent loans that convert into shares when a company (the borrower) crosses certain thresholds, thereby turning a lender into an owner in certain events. Stock options also act like equity in that their value changes with the value of the underlying shares, but the option holders generally do not have voting rights and are not eligible to receive the dividends or other distributions made to bona fide equity holders.
It is important to understand that although balance sheet equity represents the company’s net worth, the company’s shares are ultimately worth only what buyers are willing to pay for them.
Source: Investing Answers
equity
noun
English Language Learners Definition of equity
See the full definition for equity in the English Language Learners Dictionary
equity
noun
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