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

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