Okuzeka
Investing & the Stock Market vocabulary · Stocks & Shares

Equity

Meaning in investing & the stock market, with examples

/ˈekwəti/nounCore term

In investing & the stock market, equity means: Ownership in a company in the form of shares. In accounting, it also means the value left for shareholders after all debts are subtracted from the assets.

In Turkish: hisse senedi, özkaynak, pay

How it is used

In investing, 'equities' (usually plural) is the formal word for shares as an asset class: equity markets, equity funds, global equities. In financial statements, 'equity' or 'shareholders' equity' is the owners' part of the balance sheet.

Example sentences

  1. We reduced our exposure to equities and added more government bonds.

  2. The bank's equity grew strongly thanks to retained profits.

Common collocations

  • equity market
  • equity fund
  • global equities
  • shareholders' equity
  • private equity
  • stockA type of investment that gives you a small part of the ownership of a company. People also use the word for the shares of one particular company.
  • shareOne of the equal units into which the ownership of a company is divided. If you own shares, you own a part of the company.
  • return on equityA company's net profit divided by its shareholders' equity, shown as a percentage. It measures how much profit a company makes with the money its owners have invested.
  • book valueThe value of a company according to its balance sheet: total assets minus total liabilities. It is the shareholders' equity shown in the accounts.
  • asset classA group of investments with similar features that tend to behave in similar ways, such as shares, bonds, cash, real estate or commodities.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Stocks & Shares

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.