equity
UK[ˈek.wə.ti]US[ˈek.wə.ti]
n
the value of a company’s shares, or a person’s share in a company
n
the quality of being fair and impartial
n
the value of a property after all debts have been paid
Morpheme Breakdown
equ
ity
equ
equal
ity
noun suffix
Etymology
the word 'equity' originates from the latin 'aequitas', which itself derives from 'aequus', meaning 'equal, level, or fair'. this root is shared with other english words like 'equal' and 'equality', emphasizing a fundamental sense of balance and impartiality. in roman law, 'aequitas' referred to the principle of fairness used to supplement strict legal rules, a concept that directly evolved into the english legal and financial meanings. thus, the modern abstract senses of fairness in justice and the residual value in finance both stem from this core idea of balanced, proportional treatment.
Analysis
Structure: equ (equal) + ity (noun suffix)
equ (from latin 'aequus', meaning 'equal, level, fair'), ity (from latin '-itas', a suffix forming abstract nouns indicating a state or condition)
Examples
the company is planning to raise more capital by issuing equity.
the judge was known for his wisdom and sense of equity.
after selling the house and paying off the mortgage, they had $100,000 in equity.