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 Equity, what is it? Equity, in the context of finance and accounting , is the portion of a company's worth that belongs to its shareholders. Equity's book value is derived by subtracting the company's liabilities from its assets, whereas equity's market value is based on the stock's current price on the open market, or on an independent appraisal by investors or valuation experts. Shareholders' equity, owners' equity, or stockholders' equity are all names for this type of account. Equity value can be split into two categories: Financial worth as determined by the book Value in the Market, Number One the equity's book value All equity is recorded at book value in financial statements. By compiling financial statements and applying the balance sheet equation, accountants are able to arrive at this figure. In a different form, equity equals assets minus liabilities. The total worth of a company's assets is determined by adding the book values of it

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