| Equity is the money which an individual injects from their own side. While it is categorised as own money, the ownership is established by issue of shares to the person who puts in the money. Equity is defined as the total value of your company’s assets, minus the sum of its liabilities. For instance, if a company has to wind-up, then its equity would be the amount that is divided between the shareholders after its creditors have been paid and satisfied. Equity may also refer to a shareholder’s stock or other securities that represent their ownership interest in a company. |
