Definition

The value of ownership in an asset, such as a company or property, after subtracting any debts associated with it. It can also refer to fairness and justice in the way people are treated.

Example

Investing in equity can be a good way to build wealth over time.

Conversation

Have you heard about the new company policy on equity?

Yeah, I think it's a step in the right direction for fairness.

I agree! It’s important for everyone to have a sense of equity in the workplace.

Absolutely, it can really boost morale and teamwork.

Synonyms & Antonyms

Root Explanation

Equity is derived from the Latin word "aequitas" (meaning fairness or equality), which comes from "aequus" (meaning equal or level). The term refers to the quality of being fair and impartial, particularly in the distribution of resources or treatment of individuals.

Memory Tip

Think of 'equal' ('aequus') to remember that 'equity' means fairness and equality in treatment or distribution.

Visually Confused Words