Equity

Definition 1:
A financial investment in a business. An equity investment car­ries with it a share of ownership of the business, a stake in the profits and a say in how it is managed. Equity is calculated by subtracting the lia­bilities of the business from the assets of the business

Definition 2:
An accounting term used to describe the net investment of owners or stockholders in a business. Under the accounting equation, equity also represents the result of assets less liabilities.