equity

1. In a brokerage account, the market value of securities minus the amount borrowed. Equity is particularly important for margin accounts, for which minimum standards must be met.
2. Stock, both common and preferred. For example, an investor may prefer investing in equities instead of in bonds. Also called equity security.
3. In accounting, funds contributed by stockholders through direct payment and through retained earnings. See also owners' equity.
4. The market value of real estate less the balance on any financing. A home with a market value of $400,000 and a remaining loan balance of $275,000 has equity of $400,000 less $275,000, or $125,000.