Equity Meaning: Equity is the amount of capital invested or owned by the owner of a company. The equity is evaluated by the difference between liabilities and assets recorded on the balance sheet of a company. The worthiness of equity is based on the present share price or a value regulated by the valuation professionals or investors. What is equity , and what do investors need to know to start out with equity investments? Let's explore its significance in our comprehensive article In this article on what is Equity , we will also discuss how is equity calculated, changes and its different types. What is Equity ? The term equity refers to the amount of money that the company owns from its shareholders. The company is liable to return its shareholders under certain conditions. EQUITY definition: 1. the value of a company, divided into many equal parts owned by the shareholders, or one of the…. Learn more.