Compensation Glossary

Equity

Several definitions: 1) In legal terms, equity came about as a means or righting wrongs not recognized / or provided for under the British Common Law. (2) The word equity is often used to describe ownership in stock or other forms of securities. (3) In terms of accounting, equity may be used to describe the percentage by which a company's assets exceed the company's liabilities. (4) Also, in terms of accounting, equity is used to describe investments of business owners in a business.