Equity
Etymology
From Latin aequitas, "fairness, evenness" (from aequus, "even, just"). It first meant fairness or justice, and still does in law. Finance took the idea of a fair, rightful share and applied it to the portion of an asset that is genuinely the owner’s.
noun · /EK-wih-tee/
The value of an ownership stake once all debts against it are subtracted — what would actually be yours if you sold and paid off what you owe.
What it names
It is the real answer to "how much of this do I own?" — the slice of your home or your company that belongs to you rather than the bank.
Example
After a decade of mortgage payments, they had built up real equity in the house.
Related idea
Equity is ownership; a dividend is the income that ownership can throw off.
noun · /EK-wih-tee/
Fairness and even-handed justice — treating people according to their needs so that outcomes are just.
What it names
fairness in how burdens and benefits are shared
Example
The reform aimed at equity in school funding, not just equal dollars per student.
Related idea
Often set against mere equality — see egalitarianism. In law, equity is also a distinct body of principles that softens the rigidity of strict rules.