Equity is a term that is used to refer to the ownership interest in a company. In the context of the stock market, equity refers to the value of a company’s stock, which represents the ownership interest of the shareholders in the company.
In the share market, equity is an important concept that is used to measure the value of a company and the performance of its stock. The equity of a company is typically calculated by subtracting its liabilities from its assets. The resulting value represents the net worth of the company and is known as the shareholder’s equity.
Equity can also refer tfunds that are invested in a company, either by the shareholders or by external investors. These funds are used to finance the operations and growth of the company. In the share market, equity is often used as a source of funding for businesses, either through the sale of shares to investors or through the issuance of bonds or other debt instruments.
Equity is an important factor in the valuation of a company and plays a role in the overall supply and demand dynamics of the stock market. It is important for investors and traders to understand the concept of equity in order to make informed decisions about buying and selling stocks.
