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As the word suggests equity stands for freedom from bias. However, equity in economics terms is tells  money value of a property  in excess of claims or liens against it.


The term “equity” originates from equity law– system of law originating in the English chancery and comprising a settled and formal body of doctrines that supplement  statute law and are designed to enforce duties fixed by substantive law  to meet the never ending demands of commercial venture.

Equity in finance

In finance, equity is ownership of assets that may have debts attached to them. It is  measured for accounting purposes by subtracting liabilities from the value of an asset.


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