Equity

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)

• Shareholders' Equity
• Balance Sheet
• Market Value of Equity
• Negative Equity
• Brand Equity
• Return on Market Value of Equity - ROME
• Accounting Equation
• Liability
• Mortgage Equity Withdrawal - MEW