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  • Acumen Learning

Defining and Explaining Equity, and What it Means for an Organization


Business Acumen: Equity

What is Equity? You've probably heard the term before, but what does it mean? And ... maybe more importantly, what can it tell you?


If you're looking for a simple definition, equity is the portion of the company that its shareholders actually own. On a balance sheet, this will include things like common equity and retained earnings - two of the most important numbers that you'll see in the equity secti