Equity is a simple statement of a company’s assets minus its liabilities. It is helpful to consider both equity and market capitalization to get the most accurate picture of a company’s worth.

Common stock represents ownership in a company, not a direct asset or liability. Issuing common stock raises funds for a company without needing repayment like a loan. Common stock equity ...

Balance Sheet Definition: A financial statement that lists the assets, liabilities and equity of a company at a specific point in time and is used to calculate the net worth of a business. A basic ...