1.assets of a company comprise of liabilities(debt) and equity, equity is always expressed as the value of common stock owned by the stockholder. eg: Company A issued 500 shares of common stock, stockholder Sean buys 200 shares, and Sally buys 300 shares, then Sean and Sally get their equity on company A in terms of their respective investment. 2.the interest(right) or value that the owner has in real estate over and above the liens against it. Note: the right or value owned by the lender side is called liens, the right or value owned by the owner side is called equity. eg:A property has a market value of $100.The owner currently owes $60 in mortgage loans that are against the property.The owner's equity is $40.
The difference between the fair market value and current indebtedness, also referred to as the owner's interest. The value an owner has in real estate over and above the obligation against the property.
