Word
equity
Meanings
the value of an asset that you own after subtracting any debt on it
shares in a company owned by investors; ownership interest rather than debt
fairness and justice in the way people are treated, especially when giving support based on needs
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Definition
Equity is the value of something you own after subtracting what you owe on it.
Equity usually means the part of an asset that truly belongs to you once any debt is taken away. For example, if a home is worth more than the remaining mortgage, the difference is your equity. In a broader sense, it can also mean fairness and equal treatment, especially in society or workplaces.
Examples
- After ten years of payments, I finally had enough equity to renovate my kitchen.
- Your startup can raise funds by offering equity instead of taking on more loans.
- He argued that pay equity mattered as much as the company’s profits.
- They built equity in the property as the neighborhood became more popular.
Common mistake
Learners sometimes confuse equity with equality, but equity focuses on fairness and needed support, not giving everyone the exact same thing.
More at B2 level
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More nouns
- fascism Fascism is an extreme right-wing political system with a powerful dictator, strong nationalism, and…
- gaslighting Gaslighting is a form of psychological manipulation that makes someone doubt their own memory, judg…
- narcissist A narcissist is someone who is excessively self-centered and craves admiration while showing little…
- empathy Empathy is the ability to understand and share another person’s feelings.
- metaphor A metaphor is a way of describing something by saying it is something else to create a clear image …