Skip to main content


Equity refers to value or ownership rights. It is the value of a property or business or of an interest in either, minus any debts owed. Equity is also common stock or preferred stock in a corporation. For consumers, the term most often arises in the context of homeownership. An
individual’s equity in his or her home is the fair market value minus whatever amount is still owed on the mortgage. Another meaning of equity is something that is impartial, fair and just.