Dictionary
equity
the ownership interest in property, especially as shareholders in a company
The company took steps to reduce equity in an attempt to raise the value of its shares.
common law legal principles applied to achieve fairness where the strict rules of law would be too severe or unkind
General principles of equity and fairness allowed the corporate organisational veil to be lifted to protect the interests of the third party.
the amount by which the value of a piece of real estate or an interest in a piece of real estate is greater than the value of any charges against that real estate
Are there any lenders that take the amount of equity in a property into account when setting interest rates?
Phrase Bank
- In order to profit from its growth, he decided to buy equity in the company
- The employees have no equity in the company
- The board of directors is considering an equity investment in East Asia Corp
- Do you have any equity in the company?nThe company said it plans to defer a $150 million equity offering to later in 2006
- The Court found that rules of equity should govern whether courts grant a permanent injunction in litigation arising under the Patent Act
- The new mortgage deal will only be available to existing customers in negative equity who want to move house.
Additional Notes
- The common law concept of equity refers to the set of legal principles that supplement the strict rules of law where their application would otherwise lead to an unfair result. This is very specific use of the term, and has lead to the development of a number of equitable principles. However, a deeper understanding of the language of equity and its related principles is only necessary in very specific cases when dealing with certain areas of law in some common law jurisdictions.