Equity

What is equity?

Equity is the part of a company’s assets financed by its owners or investors, with no repayable debt. This includes, for example, share capital, retained earnings, and reserves. Equity represents the remaining amount after deducting all debts and liabilities of the company. It is an important element of a company’s balance sheet and represents the company’s financial stability and solvency, as well as the degree of control the owners have over the company.