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| This article is part of WikiProject Definitions. Consider editing to improve it. View articles referencing this definition. |
Equity generally refers to the combined net value of all investment products one owns. Some common investment products include stock, stock options, bonds, cash, real estate, intellectual property and loans, among others.
Oftentimes investors will refer to stocks as "equities."
ExampleAn individual can own assets like stocks, cash in money market accounts, bonds. That individual also owns liabilities such as auto loans, mortgage on his home, and other debt such as credit card bills etc.
In such a case his combined equity would be all assets less all liabilities.



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