equity

The value of a futures trading account with all open positions valued at the going market price. The CENTER ONLINE Futures Glossary

————

Ownership interest in a firm. Bloomberg Financial Dictionary

Also, the residual dollar value ( residual value) of a futures trading account, assuming its liquidation is at the going trade price. Bloomberg Financial Dictionary

In real estate, dollar difference between what a property could be sold for and debts claimed against it. Bloomberg Financial Dictionary

In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. Bloomberg Financial Dictionary

Equity is also shorthand for stock market investments. Bloomberg Financial Dictionary

————

Instrument traded on the cash market representing a share in the capital of a company. The net worth of a commodity account as determined by combining the ledger balance with an unrealized gain or loss in open positions as marked to the market. Chicago Mercantile Exchange Glossary

————

See shareholders' funds. Dresdner Kleinwort Wasserstein financial glossary

————

Security representing ownership of a stake in a corporation, i.e. share traded on a stock exchange (quoted or listed share), unquoted or unlisted share and other forms of equity. Equities usually produce income in the form of dividends. Euroclear Clearing and Settlement glossary

————

The ordinary shares of companies. The ownership interest in a company of holders of its common and preferred stock. Exchange Handbook Glossary

————

The risk-sharing part of a company's capital, usually made up of ordinary shares. London Stock Exchange Glossary

* * *

equity eq‧ui‧ty [ˈekwti] noun equities _PLURALFORM

1. [uncountable] FINANCE the capital that a company has from shares rather than from loans:

• The CEO has been moving toward the use of equity rather than debt.

• The strong stock market will encourage more companies to use equity to finance acquisitions.

• SAS will need to raise additional equity to complete the SKr20 billion of aircraft purchases it plans.

• They plan to raise $100m by releasing at least 5% of equity in the company.

— see also brand equity, external equity, return on equity

ˈbook ˌequity [uncountable] ACCOUNTING FINANCE

the value of a company's shares, as shown in its statement of its financial position at the end of a particular period of time:

• The write-down of oil and gas assets will reduce its shareholders' book equity by 50%.

deˌferred ˈequity [uncountable] ACCOUNTING FINANCE

money that a company borrows, for example in the form of convertible loan stock that can later be exchanged for shares

ˌnegative ˈequity

1. [uncountable] FINANCE when an asset, usually property, bought by a borrower with a loan is worth less than the loan remaining to be paid:

• the growing number of home owners with negative equity

2. [uncountable] ACCOUNTING FINANCE when a company's liabilities are more than its assets:

• The level of bad debts at some Thai banks may mean that some have negative equity.

ˈowners' ˌequity [uncountable] ACCOUNTING FINANCE

the difference between the value of a company's assets and its liabilities other than those to shareholders. In principle, this is what the company would be worth to shareholders if it stopped trading, its assets were sold, and its debts paid

ˌprivate ˈequity [uncountable] FINANCE

shares in new or very small companies, which are not available for people to buy on the stock market :

• Montagu is a leading private equity investor in the European market.

ˈshareholder ˌequity also shareholders' equity [uncountable] ACCOUNTING FINANCE

another name for owners' equity:

• If News Corp revalues its assets by A$1 billion, that will increase shareholders' equity to A$8.2 billion.

ˈstockholder ˌequity also stockholders' equity [uncountable] ACCOUNTING FINANCE

another name for owners' equity

ˈstub ˌequity [uncountable] ACCOUNTING FINANCE

the share capital that is left in a company after it has been financially reorganized using a large amount of debt borrowed against the company's assets

ˌtier ˈ1 ˌequity [uncountable] FINANCE

shareholders' equity in a bank. By law, banks must have a minimum amount of tier 1 equity in relation to other forms of capital:

• The bank currently has $8.894 billion in core equity capital, giving it a 4.08% tier 1 equity capital ratio.

2. equities [plural] FINANCE trading in companies' shares on a stockmarket, rather than trading on other types of market:

• investors seeking to place funds in equities

• Milan equities finished mostly higher.

3. [uncountable] FINANCE in mortgage or hire purchase lending, the amount that would be left for the borrower if the property or asset was sold and the remaining loan repaid:

tier 1 equity in

• They have seen the equity in their home rise tenfold.

4. [uncountable] LAW the principle that a fair judgement must be made where the existing laws do not provide a clear answer in a particular case:

• The courts have been willing to look at the settlement of arguments on the basis of equity rather than strict legal principle.

* * *

   The shareholders' stake in a company. Equity markets are the markets in which shares or stocks are issued and traded.

* * *

equity UK US /ˈekwɪti/ noun [U]

► FINANCE, STOCK MARKET the capital that a company gets from selling its shares rather than borrowing money: »

Many internet firms have financed themselves with equity.

»

Nearly 329 million shares, or 18% of the equity, will go on sale to investors.

issue/raise equity »

The company is planning to raise equity of £1.1 billion to fund growth plans.

»

an equity holder/investor/strategist

► (US ALSO home equity) FINANCE, PROPERTY the value of a property for the owner after it has been sold and any loan paid back: »

The equity in your home can be a cheap source of cash.

in equity »

An owner with a house worth $100,000 and an $80,000 mortgage has $20,000 in equity.

have/lose/release equity (in sth) »

According to research, retired homeowners have nearly £700 billion of equity in their homes.

► LAW a system of English law that developed from the 17th to the 19th centuries that can still be used to judge a case fairly in a court of law if the rules of common law are not suitable

→ See also BOOK EQUITY(Cf. ↑book equity), BRAND EQUITY(Cf. ↑brand equity), COST OF EQUITY(Cf. ↑cost of equity), DEBT/EQUITY RATIO(Cf. ↑debt/equity ratio), DEBT-EQUITY SWAP(Cf. ↑debt-equity swap), DEBT-FOR-EQUITY(Cf. ↑debt-for-equity), DEFERRED EQUITY(Cf. ↑deferred equity), EMPLOYMENT EQUITY(Cf. ↑employment equity), EXTERNAL EQUITY(Cf. ↑external equity), HORIZONTAL EQUITY(Cf. ↑horizontal equity), INTERNAL EQUITY(Cf. ↑internal equity), NEGATIVE EQUITY(Cf. ↑negative equity), OWNERS' EQUITY(Cf. ↑owners' equity), PRIVATE EQUITY(Cf. ↑private equity), RETURN ON EQUITY(Cf. ↑return on equity), SHAREHOLDERS' EQUITY(Cf. ↑shareholders' equity), STOCKHOLDER EQUITY(Cf. ↑stockholder equity), STUB EQUITY(Cf. ↑stub equity), SWEAT EQUITY(Cf. ↑sweat equity), TIER 1 CAPITAL(Cf. ↑Tier 1 capital), VERTICAL EQUITY(Cf. ↑vertical equity)