Glossary
Definition
Equity
Ownership interest in a company, represented by shares.
Equity represents ownership in a company. For public companies, equity is divided into shares of stock. For private companies, equity is defined by the percentage of the company owned. A CEO's net worth is largely determined by the value of their equity stake in their company or portfolio of companies.
Frequently Asked Questions
What does it mean to have equity in a company?
Having equity means you own a portion of the company. This entitles you to a share of any dividends paid and to a proportional share of the proceeds if the company is sold or liquidated.