Tuesday, November 08, 2016


Equity = Assets - Liabilities

I'm turning more and more to Investopedia as they lay out information in a way I can understand. The accounting equation succintly defines what equity constitutes but they go into a great deal of detail in explaining it out

 It means that if you have that shiny new sportscar then the equity is the amount you've paid back on your loan; the cost of your home minus the mortgage (although see below)

Image result for equity


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