noun

equity

/ˈɛkwɪti/ · say it: EK·wit·ee

ownership value in a company or property after debts

In Banking & Finance

In more detail

1. (noun) the quality of being fair and treating people equally

2. (noun) the value of a property or business after subtracting debts owed on it

3. (noun) stocks or shares of a company

Examples

1. The school is committed to equity by providing support to all students regardless of their background.
2. After paying off the mortgage, they built up significant equity in their home.
3. She owns equity in three different tech companies.

How to use equity

Equity has distinct meanings depending on context: in social discourse it emphasizes fairness and equal treatment; in finance it refers to ownership interest or asset value minus liabilities. The social meaning has become increasingly prominent in contemporary usage around diversity and inclusion initiatives.

Common phrases

equity in the workplace
racial equity
gender equity
build equity
home equity
equity markets

Synonyms

fairness · impartiality · justice · ownership stake · net worth

Opposites

bias · inequality · injustice

Word family

equitable (adjective) · equitably (adverb) · inequity (noun) · inequitable (adjective)

A common mistake

Learners sometimes confuse equity (fairness/ownership) with equality (sameness of treatment or condition), though they are related concepts with different nuances and applications.

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