Equity in Accounting
What is Equity in Accounting?
Equity refers to the ownership interest or residual claim that shareholders have in a company after all debts and other obligations have been paid off. In other words, it represents the value of a company's assets minus its liabilities.
How to measure it?
Equity can be measured in different ways, such as through the book value of a company's assets or the market value of its shares. The latter is determined by the supply and demand for the company's shares in the stock market, which can fluctuate depending on a variety of factors such as financial performance, market conditions, and investor sentiment.
Get HighRadius’ Autonomous Accounting Software if you are looking to automate your end-to-end accounting processes
