Meaning & use
equity
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Meanings
noununcountable
Fair treatment of people that takes their different circumstances and needs into account, so that outcomes are just.
Grammar: Used without 'a' or a plural: the school aims for equity in funding.
Patterns
- equity in something
- equity between groups
The city promised greater equity in how it distributes park funding.
Equity means giving each student the support they actually need.
Many employees demanded pay equity between departments.
noununcountablefinance
The value of what an owner holds in a property or business once everything owed on it has been subtracted.
Grammar: Used without 'a': she has equity in the house, meaning part of its value is hers.
Patterns
- equity in something
- build equity
After ten years of payments, they had built up a lot of equity in their home.
The mortgage was larger than the house's value, so there was no equity left.
He used the equity in his flat to fund a small business.
nouncountable or uncountablefinance
A share in the ownership of a company, usually held as stock.
Grammar: Often plural when meaning shares: she invests in equities; the uncountable form means ownership generally.
Patterns
- equity in a company
- invest in equities
Investors shifted money from bonds into equities.
The founders kept a large share of equity in the startup.
She prefers private equity to government bonds.
Word forms
| plural | equities |
|---|
Common combinations
- home equity
- They borrowed against their home equity to pay for repairs.
- gender equity
- The league has invested in gender equity programs.
- private equity
- A private equity firm bought the retailer.
- racial equity
- The report focuses on racial equity in healthcare.
- equity and inclusion
- The company created a team for equity and inclusion.
- build equity
- Paying extra each month helps you build equity faster.
Synonyms and how they differ
- fairness
- Fairness is the everyday word for just treatment, while equity is more formal and focuses on adjusting for different needs.
- justice
- Justice is broader and often tied to laws and punishment, whereas equity is about fair distribution of resources and opportunity.
- impartiality
- Impartiality means not taking sides, but equity goes further and aims to correct unfair differences.
- stake
- In business, stake is a looser word for any interest in something, while equity is a precise financial ownership share.
Opposites
Word family
Commonly confused: equity or equality?
equity vs equality
Equality means treating everyone the same; equity means giving people what they need to reach a fair outcome, which can mean treating them differently.
Practice
Which sentence uses 'equity' in its financial meaning?
Choose one answer.
Equity in a house means the part of its value that the owner really owns. The other sentences use the fairness meaning.
Make it your own
Write a sentence using “equity”, then check it and compare it with the examples above.