the difference between the market value of a property and the claims held against it
"After paying off half his mortgage, John realized that his home's equity had grown significantly due to recent increases in local property values."
the ownership interest of shareholders in a corporation
"After years of growth, the startup's founders finally realized their significant equity in the company was worth millions."
Fairness, impartiality, or justice as determined in light of "natural law" or "natural right".
"The judge ruled that the contract was void not because it violated a written statute, but because enforcing it would contradict principles of natural equity."
In plain English: Equity means fairness and justice, especially when people are treated equally regardless of their background or situation.
"The new law aims to ensure equity in education for all students regardless of their background."
Usage: In everyday conversation, equity refers to fairness and impartiality rather than strict adherence to written rules or legal rights. Use this term when describing a situation where the outcome is just even if it deviates from the literal letter of the law.
The word equity entered English via the Old French equité and originally described uniformity or impartiality. It derives from the Latin aequitās, which carried meanings of fairness and evenness before evolving into its modern sense.