Ownership equity
From Wikipedia, the free encyclopedia
In business accounting, ownership equity is the owners' interest in all assets after all liabilities are paid. There is a greater discussion at shareholders' equity (when the owners are shareholders). Ownership equity is also known as equity, risk capital, and liable capital.
In a bankruptcy court, creditors have the first claim on assets, and ownership equity is the last or residual claim against assets, paid only after all other creditors are paid.
In real estate the owner's equity in a property is the difference between the market price of a property and the owner's mortgage debt, or the owner's 'home equity loan'.
