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Ownership equity

Ownership equity Definition

Ownership equity, commonly known simply as equity, also risk or liable capital, is a financial term for the difference between a company's assets and liabilities -- that is, the value that accrues to the owners (sole proprieter, partners, or shareholders). In a corporation, it is called shareholders' equity. In bankruptcy, ownership equity is the last or residual claim against assets, paid only after all other creditors are paid.

In real estate, equity refers to the difference between the market value of a property and the owner's mortgage debt.

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