What is equity: Equity is the value of

Equity is the value of an asset or investment minus any debt owed on it . Equity investors buy shares with a view to selling for profit or benefitting from dividends. Equity investments can play an important role in a diverse portfolio. Equity Meaning: Equity is the amount of capital invested or owned by the owner of a company. The equity is evaluated by the difference between liabilities and assets recorded on the balance sheet of a company. The worthiness of equity is based on the present share price or a value regulated by the valuation professionals or investors. Equity is the amount of money that a company's owner or shareholder has invested or owns in it. Learn how to calculate equity , its importance, and different kinds of equity with examples and sources. The book value of equity is calculated as the difference between assets and liabilities on the company’s balance sheet, while the market value of equity is based on the current share price (if public) or a value that is determined by investors or valuation professionals.