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CEFR C2 — Proficiency

Equity

Definition

(finance, formal) The value of the shares issued by a company, representing ownership interest. Also, the value of ownership in a property or business, after any debts have been subtracted. Often used in the phrases 'equity stake', 'equity investment', and 'equity financing'.

Example Sentences

1The startup secured a significant equity investment from a venture capital firm, which helped to fuel its rapid expansion.
2When calculating the equity of a property, it's essential to subtract any outstanding mortgage debt from the current market value.
3The company's decision to issue new shares diluted the equity of existing shareholders, leading to a decline in stock price.
4In the context of social justice, equity refers to the principle of fairness and equal access to resources and opportunities.
5The private equity firm acquired a majority stake in the struggling company, with plans to restructure and sell it for a profit.

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