What is Equity?

Equity is the net worth of a business. It is also called Owner’s Equity. Equity is made up of the investment in the business by the owners plus any retained earnings held by the business which are attributable to the owners. Owners in this sense can be ordinary shareholders, partners or proprietors of the business.

For further information on Equity see the Wikipedia definition.

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Last modified August 19th, 2016 by Team

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