What's what in finances: Equity

The share capital or net worth of a company, i.e. the assets of the company after payment to its creditors. 

Equity is found on a company's balance sheet and is one of the most common financial metrics employed by analysts to assess the financial health of a company. 

It also represents what would be left if all of a businesses’ assets were liquidated and the debt paid off.

Equity is important because it represents the value of an investor’s stake in securities or a company. Investors who hold stock in a company are usually interested in their personal equity in the company, represented by their shares.

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