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What does equity mean?


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2010-01-08 18:11:39
2010-01-08 18:11:39

In regards to home ownership and property, equity can be seen as:

Home appraisal value (minus) loan amount (equals) Equity amount

It is possible to have negative equity, which can happen when a homeowner buys in a rising market, and there is a price correction, reducing the value of the home appraisal. If there is no loan against the home, the equity is equal to the appraised value.

Equity can also be viewed as Share.


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Employment Equity is fairness in employment

Equity in finance refers to the residual value of assets. The term equity can also be used in association with accounting.

"American Equity, if described as the equity of the United States, would be the value of the country's assets compared to the amount of debt which exists."

its mean capital invested by owner

the tax is fairly assessed

The meaning of an all-equity firm is one that has raised its entire capital through the sale of shares. This is form of raising capital is known as equity financing.

It usually means equity in the sense of: Your house is worth $100,000 and you owe $50,000 so you have $50,000 equity.

To compute for ROE if there is loss and negative equity, divide the company's net income by the stockholders' equity. A negative ROE does not necessarily mean bad news.

"Truth and Equity" or "Truth and Justice"

Yes you do. *Clarification: if you own the home you are owner of any equity that may be realized by the sale or leveraging of the property. That does not mean the home has equity. It only has equity if it is worth more than loans or liens held against it.

Finance equity refers to the residual claimant or interest of the major type of investors in assets after paying off all the liabilities. Negative equity exists if liability is more than assets.

If you mean that there was a mortgage recorded prior to the home equity mortgage and the first mortgage is foreclosed then the equity mortgage would be wiped out by the foreclosure. If you default on a home equity mortgage then the bank will foreclose and take possession of your home.

A Home Equity Line Of Credit (HELOC) is generally granted by a bank or credit union. Equity is the amount of your home that you actually own. For example, if your home is worth $100,000 and you have paid $20,000 in principal, your equity is $20,000. A loan can be made using this equity as collateral. A line of credit for this amount basically means you will be given a checkbook that draws upon the loan.

EQUITY:- Equity is the term in which liability is introducedOwner Equity :- Owner Equity is the term in which liabilty and owner capital is is some time called Equities....

The definition of the word equity can mean two things. Firstly, if can mean fair and equal. Secondly, it is used in the legal sense to describe mediation in a loss of fairness. It can also be used to describe the value of something.

On a balance sheet, Members' Deficit indicates that there is a lack of equity for the company's capital investors. Usually this account would be known as members' equity, but because the said equity is negative there exist instead a deficit.

The equity multiplier = debt to equity +1. Therefore, if the debt to equity ratio is 1.40, the equity multiplier is 2.40.

net new equity is given by the formula; new equity-old equity- addition to retained earnings

It can happen A: I don't think it can happen. let us see... equity = represents your ownership 80% equity = says that you own 80% of the business zero equity = you have no ownership negative equity = ??? Negative equity would just mean that you have no property plus you owe someone else which means its just another liability. So I think its not possible

Basic Accounting RatioAssets = Liabilities + EquitySoEquity = Assets - LiabilityandEquity = 750 - 250Equity = 500

To apply for an equity loan you have to contact a mortgage or home equity lender and see what kind of equity your home has. If your property value has declined it is possible that you could have negative equity.

No. Capital is what the owner invested in the property originally, where as equity is the difference between the buying price & the selling price. EG. buy a home for $50K (using your own CAPITAL) sell the home for $200K = $150K Equity.

debt-equity ratio=total debt/total equity

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