What is equity?

Share capital is the portion of a particular asset that you actually own after deducting all the expenses you have to pay or all the money you borrowed to buy the asset. When investing, equity is the stock or share that gives you ownership of the company.

Where have you heard of equity?

Equity is an investment combination one of the major asset classes in, so you may hear people refer to stocks and shares as equity.

The information you need to know about the share capital.

If you own equity in a company, you want the business to run well so that your equity appreciates. The value of your equity is determined by the company's share price. The company's share capital can also generate revenue for you, and if the company is well run, you will be able dividend form, sharing the company's profits. Share capital is bought and sold on the stock market. You 've probably heard people talk about equity in real estate. If you own a property worth £ 300,000 with a mortgage loan of £ 50,000, you own £ 250,000 of equity in the property.