Equity vs. Share — What's the Difference?
By Tayyaba Rehman — Published on September 23, 2023
Equity represents ownership in a company or asset, while a Share is a unit of that ownership.
Difference Between Equity and Share
Table of Contents
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Key Differences
Equity is a broad term denoting ownership in any asset after debts associated with that asset are cleared. It reflects the value that would be returned to a company's stakeholders if all assets were liquidated and all debts paid. Share, on the other hand, refers to a single unit of ownership in a corporation or financial asset. Owning a Share means having a piece of the company's Equity.
While Equity can represent ownership in any kind of asset, such as a house (after subtracting mortgages), Share specifically denotes ownership in a business entity, typically a corporation. If someone says they have Equity in a company, it implies some level of ownership, but if they specify the number of Shares, it quantifies that ownership.
It's important to note that while all Shares represent Equity, not all Equity is represented by Shares. For instance, in a partnership or sole proprietorship, ownership might not be divided into Shares. In these cases, a person's Equity represents their stake in the business without specifying the number of Shares.
In the world of investments, when investors talk about increasing their Equity, they're referring to increasing their ownership or stake in a particular asset or company. If they mention acquiring more Shares, they're specifically speaking about purchasing more units of ownership in a company that issues stock.
Lastly, in the context of stock markets, the value of one's Equity in a company can fluctuate based on the market value of those Shares. The value of a Share can rise or fall based on various factors, affecting the total Equity an individual has in that company.
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Comparison Chart
Definition
Ownership in an asset after debts are cleared.
A unit of ownership in a corporation or financial asset.
Context
Can refer to any asset, like real estate or a company.
Specifically refers to corporate ownership.
Representation
Can be represented by Shares or just a percentage.
Represents a quantified piece of Equity in a company.
Issuance
Doesn't necessarily need to be issued or traded.
Can be issued, bought, and sold in stock markets.
Relation to Debt
Reflects value after considering debts and liabilities.
Doesn't factor in debt, but its value can be influenced.
Compare with Definitions
Equity
Equity signifies ownership interest in a company or property.
He has significant Equity in the tech startup.
Share
A Share signifies a unit of ownership in a company.
She bought 50 Shares of the company's stock.
Equity
Equity also stands for fairness and justice.
The judge ruled in favor of Equity and fairness.
Share
Share can also mean a part or portion of something.
He did his Share of the work.
Equity
Equity might refer to stocks or shares in the context of the financial market.
Her portfolio consists mainly of Equities from the tech sector.
Share
In colloquial terms, Share can mean telling or recounting something to someone.
She Shared her experience during the trip with her friends.
Equity
Equity can represent the value of an owned asset minus the amount of all liabilities.
After paying her mortgage for 15 years, she has built considerable Equity in her home.
Share
In the context of technology, Share can refer to giving access to digital resources.
Can you Share the document with me?
Equity
In business, Equity can be the amount of funds contributed by the owners plus retained earnings.
The company's Equity has grown over the past five years.
Share
Share might also denote a portion of profits that a company distributes to its shareholders.
Investors were pleased with the generous Share of dividends.
Equity
The state or quality of being just and fair.
Share
A part or portion belonging to, distributed to, contributed by, or owed by a person or group
The pirates argued over their shares of the treasure.
Equity
Something that is just and fair.
Share
An equitable portion
Do one's share of the work.
Equity
Justice achieved not simply according to the strict letter of the law but in accordance with principles of substantial justice and the unique facts of the case.
Share
One of the equal parts into which the capital stock of a company is divided
Bought 200 shares of the company's stock.
Equity
See court of equity.
Share
A unit of ownership in a mutual fund or other investment vehicle
Bought two shares in a mutual fund.
Equity
An equitable right or claim
An analysis of the equities and inequities brought about by the current trade bill.
Share
Shares Chiefly British Stocks
European shares jumped two percent. The fund invests half the money in bonds and half in shares.
Equity
Ownership interest in a corporation, property, or other holding, usually calculated as the value of the holding after subtracting any debt or liabilities.
Share
A plowshare.
Equity
Equities Shares of common stock or preferred stock.
Share
To accord a share in (something) to another or others
Shared her chocolate bar with a friend.
Equity
The value of a brand's reputation.
Share
To divide and parcel out in shares; apportion
Shared the estate among his heirs.
Equity
Representing an ownership interest
An equity stake.
Share
To participate in, use, enjoy, or experience jointly or in turns
Share a responsibility.
Share a room.
Equity
Of or relating to stocks
An equity mutual fund.
Share
To hold or have jointly with another or others
She shares my view about the election.
Equity
Subordinated to all other claims on income, earnings, or assets
The equity tranche.
Share
To relate (a secret or experience, for example) to another or others.
Equity
Fairness, impartiality, or justice as determined in light of "natural law" or "natural right".
Share
(Computers) To make (a digital file) accessible to other users on a network, as for copying and downloading.
Equity
(legal) Various related senses originating with the Court of Chancery in late Medieval England
Share
To have a share or part
Shared in the profits.
Equity
(legal) The power of a court of law having extra-statutory discretion, to decide legal matters and to provide legal relief apart from, though not in violation of, the prevailing legal code; in some cases, a court "sitting in equity" may provide relief to a complainant should the code be found either inapplicable or insufficient to do so.
Share
To allow someone to use or enjoy something that one possesses
Being in daycare taught the child to share.
Equity
(legal) A right which accrues to a party in a transaction because of the nature of the transaction itself, and which is exercisable upon a change of circumstances or conditions; in other words, an equitable claim.
Share
To use or enjoy something jointly or in turns
There is only one computer, so we will have to share.
Equity
The body of law which was developed in the English Court of Chancery, which Court had extra-statutory discretion, and is now administered alongside the common law of Britain.
Share
To talk about personal experiences or feelings with others.
Equity
(finance) Various senses related to net value
Share
A portion of something, especially a portion given or allotted to someone.
Each of the robbers took a share of the loot.
The TV programme was cancelled because it only gained a 10% share of that night's viewing audience.
Equity
Value of property minus liens or other encumbrances.
Home equity
I have a lot of equity in my house.
Share
(finance) A financial instrument that shows that one owns a part of a company that provides the benefit of limited liability.
Equity
(business) Ownership, especially in terms of net monetary value of some business.
Share
(computing) A configuration enabling a resource to be shared over a network.
Upload media from the browser or directly to the file share.
Equity
(accounting) Ownership interest in a company as determined by subtracting liabilities from assets.
Share
(social media) The action of sharing something with other people via social media.
Equity
(poker) A player's expected share of the pot.
Share
(anatomy) The sharebone or pubis.
Equity
(nonstandard) Equality
Share
(agriculture) The cutting blade of an agricultural machine like a plough, a cultivator or a seeding-machine.
Equity
Equality of rights; natural justice or right; the giving, or desiring to give, to each man his due, according to reason, and the law of God to man; fairness in determination of conflicting claims; impartiality.
Christianity secures both the private interests of men and the public peace, enforcing all justice and equity.
Share
To give part of what one has to somebody else to use or consume.
Equity
An equitable claim; an equity of redemption; as, an equity to a settlement, or wife's equity, etc.
I consider the wife's equity to be too well settled to be shaken.
Share
To have or use in common.
To share a shelter with another
They share a language.
Equity
A system of jurisprudence, supplemental to law, properly so called, and complemental of it.
Equity had been gradually shaping itself into a refined science which no human faculties could master without long and intense application.
Share
To divide and distribute.
Equity
The difference between the market value of a property and the claims held against it
Share
To tell to another.
He shared his story with the press.
Equity
The ownership interest of shareholders in a corporation
Share
To allow public or private sharing of computer data or space in a network
Equity
Conformity with rules or standards;
The judge recognized the fairness of my claim
Share
To cut; to shear; to cleave; to divide.
Share
The part (usually an iron or steel plate) of a plow which cuts the ground at the bottom of a furrow; a plowshare.
Share
The part which opens the ground for the reception of the seed, in a machine for sowing seed.
Share
A certain quantity; a portion; a part; a division; as, a small share of prudence.
Share
Especially, the part allotted or belonging to one, of any property or interest owned by a number; a portion among others; an apportioned lot; an allotment; a dividend.
Share
Hence, one of a certain number of equal portions into which any property or invested capital is divided; as, a ship owned in ten shares.
Share
The pubes; the sharebone.
Share
To part among two or more; to distribute in portions; to divide.
Suppose I share my fortune equally between my children and a stranger.
Share
To partake of, use, or experience, with others; to have a portion of; to take and possess in common; as, to share a shelter with another.
While avarice and rapine share the land.
Share
To cut; to shear; to cleave; to divide.
The shared visage hangs on equal sides.
Share
To have part; to receive a portion; to partake, enjoy, or suffer with others.
A right of inheritance gave every one a title to share in the goods of his father.
Share
Any of the equal portions into which the capital stock of a corporation is divided and ownership of which is evidenced by a stock certificate;
He bought 100 shares of IBM at the market price
Share
Assets belonging to or due to or contributed by an individual person or group;
He wanted his share in cash
Share
The result of parcelling out or sharing;
Death gets more than its share of attention from theologicans
Share
Any one of a number of individual efforts in a common endeavor;
I am proud of my contribution to the team's success
They all did their share of the work
Share
A sharp steel wedge that cuts loose the top layer of soil
Share
Have in common;
Our children share a love of music
The two countries share a long border
Share
Use jointly or in common
Share
Have, give, or receive a share of;
We shared the cake
Share
Give out as one's portion or share
Share
Communicate;
I'd like to share this idea with you
Common Curiosities
How is the value of a Share determined?
The market value of a Share is determined by supply and demand factors in the stock market, influenced by company performance and external events.
What does Equity generally mean in the context of a business?
In a business context, Equity represents ownership interest in the company.
Is a Share the same as stock?
While they are often used interchangeably, a Share is a unit of stock representing a piece of a company's Equity.
How does one increase their Equity in a company?
By acquiring more Shares or by the increase in the company's overall value.
How are dividends related to Shares?
Dividends are portions of a company's profits distributed to shareholders based on the number of Shares they own.
Can a company have Equity but not issue Shares?
Yes, especially if it's a sole proprietorship or partnership; ownership isn't necessarily divided into Shares.
Can I sell my Shares anytime?
If they are publicly traded, you can usually sell them through a stock exchange, but some restrictions might apply.
How can I determine my home's Equity?
Subtract any outstanding mortgage or loan amounts from your home's current market value.
Can Equity be negative?
Yes, if a company's liabilities exceed its assets, it can have negative Equity.
If I own Shares in a company, do I own its Equity?
Yes, each Share represents a portion of the company's Equity.
What's the difference between Equity and capital?
While both relate to financial resources, Equity is ownership interest, whereas capital is the financial assets or value used to run a business.
Are Shares only related to businesses?
Primarily, but Share can also refer to a part or portion of anything in general contexts.
How do company profits impact my Equity?
If a company's profits rise, its value may increase, potentially raising the value of its Shares and thus your Equity.
Do all companies issue Shares?
No, especially smaller or privately-held companies might not issue Shares to the public.
Why is Equity important for companies?
Equity can provide a snapshot of a company's financial health and its value to shareholders.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
