Equity Terms

Equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If valuations placed on assets do not exceed liabilities, negative equity exists. In an accounting context, Shareholders' equity (or stockholders' equity, shareholders' funds, shareholders' capital or similar terms) represents the remaining interest in assets of a company, spread among individual shareholders of common or preferred stock.

Equity is used in accounting in several ways. Often the word equity is used when referring to an ownership interest in a business. Examples include stockholders’ equity or owner’s equity.

Occasionally, equity is used to mean the combination of liabilities and owner’s equity. For example, some restate the basic accounting equation from Assets = Liabilities + Owner’s Equity to Assets = Equities.

Equity is also used to indicate an owner’s interest in a personal asset. The owner of a $200,000 house that has an $80,000 mortgage loan is said to have $120,000 of equity in the house.

People face a lot of issues to understand and relate to equity terms. This application helps people from the world of accountancy and finance as well as the people not from the world of accountancy to be able to understand and be updated on the terms of equity.

Going further, the application has a potential to include the links to the informative websites, to integrate with the social networking websites and thus to become a complete Equity bible.

The Free App includes Terms for first 3 alphabetic characters and for the balance terms you will have to buy the complete application using the in-App feature of the application.


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