Equity

Posted on Jan 13, 2015

1) Ownership interest in a business endeavor; net worth. 2) Ownership interest in a corporation through the purchase of shares of stock. 3) A customer’s ownership in an account at a brokerage firm. The customer’s equity is the account’s market value of long positions (commonly just referred to as “long market value”) minus the account’s debit balance, or the credit balance minus market value of short positions (“short market value”).