Equity

In a broader sense, equity refers to shares, but in a narrower sense it refers only to share capital. In the latter case, the net assets that can be distributed after the payment of receivables in the event of the company's liquidation.

The word equity is used in many different ways around the world. In its most commonly used meaning share means 

In a stricter economic sense, it means the founder's capital of a company. This is pure, a contingency liquidation assets remaining after a shareholders, can be divided between owners after payment of liabilities. 

In this capacity, equity is asset-based valuation of a company it is also an essential element of one of the most used indicators. This indicator is a ROE (return on equity, i.e. return on equity on equity), which a for own capital it takes projected after-tax profit as a basis for determining the value of a company.

The term equity appears in the on the venture capital market a very important institution, identified with the original English term in almost all language areas private equity fund also in its name.