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.