Equity is the value of an asset less any debts or liabilities against it. Equity can be used to describe ownership in a business, such as shares in a company. It can also be used in real estate, referring to the portion of a property’s value that the owner actually owns outright, without any debts or other claims against it. Equity can also refer to the value of equity securities, such as stocks.

Equity is one of the three main pillars of investment, along with debt and cash. Equity investing involves buying shares in a company, which represents ownership in that company. Equity investors receive a portion of the company’s profits, as well as any voting rights associated with ownership. Equity can also be used to describe the amount of ownership that someone has in a property. Equity can increase through making payments on a mortgage or other loan against the property, or by the property increasing in value.