Equity is simply the value of an investor's stake in a company. It is represented by the value of shares an investor owns. Stock ownership gives shareholders access to potential capital gains and dividends.
What is Equity? The term “equity” refers to fairness and justice and is distinguished from equality: Whereas equality means providing the same to all, equity means recognizing that we do not all start from the same place and must acknowledge and make adjustments to imbalances.