Equity in an ownership investment. If you own your home outright you own 100 percent of the equity in your home. But if you have a mortgage, part of your home’s value is pledged to the bank as collateral and part of it is yours.

Stocks are equities. A share of stock represents ownership in a corporation. If you own stock in a big company like Disney, you have equity in that company. You are an owner in that company.