Definition
Equity, also known as shareholders' equity or net assets, represents the residual interest in the assets of an entity after deducting its liabilities. Equity reflects the ownership stake held by shareholders in a company and represents the amount of capital contributed by shareholders plus retained earnings or losses accumulated over time. Equity is calculated as the difference between a company's total assets and total liabilities and is a key measure of a company's financial health and value to its owners.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.