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, Founding Track Chair for Finance, Entrepreneurship & Economics at Singularity University

Equity means the value of an ownership interest in something. So if you own your home, for example, with a market value of $X and you have a mortgage on which you owe $Y, then your equity in your home is worth $X-Y. Similarly, if you are a startup founder who owns, say, 5% of a company which, after its last financing round, was valued at $10 million, then your equity in the company is worth $500,000 (not accounting for the complications of any liquidation preferences.)

Ownership interests in a corporation are accounted for by issuing shares of Common Stock. There can be any arbitrary n…

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What is the difference between share, stock and equity?

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What is the difference between equity and share in a share market?

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What are the differences between equity shares and preference shares?

Is there any difference between a stock and a share?