equity

American  

[ek-wi-tee] / ˈɛk wɪ ti /

noun

plural

equities

1. the quality of being fair or impartial; fairness; impartiality.

   the equity of Solomon.

   Synonyms:

   justice, objectivity, justness, disinterest

   Antonyms:

   discrimination, bias, injustice, prejudice, partisanship, partiality, inequity

2. something that is fair and just.

   The concepts and principles of health equities and inequities are important to society as a whole.

3. the policy or practice of accounting for the differences in each individual’s starting point when pursuing a goal or achievement, and working to remove barriers to equal opportunity, as by providing support based on the unique needs of individual students or employees.

4. Law.

   1. Also called chancery.  the application of the dictates of conscience or the principles of natural justice to the settlement of controversies.

   2. Also called chancery.  a system of jurisprudence or a body of doctrines and rules developed in England and followed in the U.S., serving to supplement and remedy the limitations and the inflexibility of the common law.

   3. an equitable or legally valid right or claim.

   4. equity of redemption.

5. the monetary value of a property or business beyond any amounts owed on it in mortgages, claims, liens, etc..

   Over the years, they have carefully avoided tapping into their home equity for unnecessary expenses.

6. Informal. ownership, especially when considered as the right to share in future profits or appreciation in value.

7. the interest of the owner of common stock in a corporation.

8. (in a margin account) the excess of the market value of the securities over any indebtedness.

9. Equity. Actors' Equity Association.

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equity ¹ British  

/ ˈɛkwɪtɪ /

noun

1. the quality of being impartial or reasonable; fairness

2. an impartial or fair act, decision, etc

3. law a system of jurisprudence founded on principles of natural justice and fair conduct. It supplements the common law and mitigates its inflexibility, as by providing a remedy where none exists at law

4. law an equitable right or claim

   equity of redemption

5. the interest of ordinary shareholders in a company

6. the market value of a debtor's property in excess of all debts to which it is liable

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Equity ² British  

/ ˈɛkwɪtɪ /

noun

1. Full name: Actors' Equity Association.  the actors' trade union

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equity ¹ Cultural  

1. In real estate, the financial value of someone's property over and above the amount the person owes on mortgages. For example, if you buy a house for $100,000, paying $20,000 down and borrowing $80,000, your equity in the house is $20,000. As you pay off the principal of the loan, your equity will rise.

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equity ² Cultural  

1. A body of rules or customs based on general principles of fair play rather than on common law or statutory law.

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Etymology

Origin of equity

First recorded in 1275–1325; Middle English equite, equitee, equyte, from Old French equité, from Latin aequitāt-, stem of aequitās “evenness, smoothness, fairness”; equi-, -ty ²

Explanation

Equity is the state or quality of being fair. In classrooms, it's important to establish equity as any hint of unfairness turns everyone against the teacher. In finance, equity refers to the value of a business or piece of property after subtracting the amount of the mortgage. Also in finance, equities are stocks, in contrast to bonds. Equity is from Middle English equite, from Old French équité, from Latin aequitas "equality," from aequus "equal."

Example Sentences

It was among six license deals and four equity investments the French drugmaker has done with Chinese biotechs in the past two years, Vnuk said.

From The Wall Street Journal • Apr. 11, 2026

But while credit funds are making headlines, private equity is the far bigger asset class, with much larger companies.

From The Wall Street Journal • Apr. 11, 2026

With this in mind, sharp rallies in the equity market should be viewed not as normalization, but as an opportunity to “buy” volatility on temporary easing in stress.

From Barron's • Apr. 10, 2026

As a result, the retirement company said, “plan participation rates have increased, automatic enrollment designs are stronger, and participant portfolio construction has continued to improve with more age-appropriate asset mixes and less extreme equity allocations.”

From MarketWatch • Apr. 10, 2026

“The fixed income world dwarfs the equity world,” he said.

From "The Big Short" by Michael Lewis

Related Words

• capital
• investment