equity
The company promotes equity in hiring by ensuring equal opportunities for all applicants.
The company ensures fairness in hiring by giving everyone an equal chance.
the quality of being fair and impartial
The judge emphasized the importance of equity in delivering justice.
The judge stressed that fairness is crucial in legal decisions.
Often used in legal, social, or ethical contexts to describe impartial treatment.
the value of shares issued by a company
The startup raised $5 million in equity funding from investors.
The startup obtained $5 million by selling shares to investors.
Shareholders have a claim on the company's equity.
Shareholders own a portion of the company's value.
In finance, equity refers to ownership interest in a company, represented by shares.
the value of a property after subtracting liabilities
The homeowner's equity in the house increased as the mortgage was paid down.
The homeowner's ownership stake in the house grew as the loan was reduced.
In real estate, equity is the difference between the property's market value and the outstanding loan balance.
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Pro Tip
Distinguish equity from equality
Equality means treating everyone the same, while equity means giving people what they need to succeed. For example, providing ramps for wheelchair users ensures equity in access, while building stairs treats everyone equally but excludes those with mobility challenges.
Gold Rule
Use 'equity' for fairness, not 'equality'
In social justice contexts, 'equity' implies adjusting for differences to achieve fair outcomes, whereas 'equality' refers to identical treatment. Example: 'Equity in education means extra resources for students with learning disabilities.'
Word Origin
From Latin *aequitas* (equality, fairness), derived from *aequus* (equal). Entered English in the 14th century with the meaning of fairness, later expanding to financial contexts in the 17th century.
Usage Notes
In modern usage, 'equity' is often contrasted with 'equality'—equity focuses on outcomes, while equality emphasizes uniform treatment. For example, providing extra support to disadvantaged groups to achieve fairness is an equity approach.