What is Equity?

Equity, also known as stocks, is the ownership interest in a company or asset. It is the value that remains after all liabilities are paid off. Equity is also known as shareholders’ equity or net worth. It is calculated by taking the total assets of a company and subtracting its total liabilities. Equity is one of the three primary components of corporate capital structure, with the other two components being debt and working capital. 

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