Equity vs. Capital — What's the Difference?

The net value of an asset after deducting what is owed on it.

Financial assets or resources owned by an individual or organization.

The value of shares issued by a company.

Wealth in the form of money or other assets.

Interest or ownership in any asset.

Fund accumulated to support ongoing development and growth.

The value representing ownership in a firm, differentiated by stocks.

Resources available for use in the production of further wealth.

Financial value calculated by assets minus liabilities.

The total financial investment used in a business by the owners.

The state or quality of being just and fair.

The city or town that functions as the seat of government and administrative centre of a country or region

Something that is just and fair.

Wealth in the form of money or other assets owned by a person or organization or available for a purpose such as starting a company or investing

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.

A letter of the size and form used to begin sentences and names

See court of equity.

The distinct, typically broader section at the head of a pillar or column

An equitable right or claim

(of a letter of the alphabet) large in size and of the form used to begin sentences and names.

Ownership interest in a corporation, property, or other holding, usually calculated as the value of the holding after subtracting any debt or liabilities.

Excellent

Equities Shares of common stock or preferred stock.

Used to express approval, satisfaction, or delight

The value of a brand's reputation.

A town or city that is the official seat of government in a political entity, such as a state or nation.

Representing an ownership interest

A city that is the center of a specific activity or industry

Of or relating to stocks

Wealth, especially in the form of financial or physical assets, used in the production or accumulation of more wealth.

Subordinated to all other claims on income, earnings, or assets

Accumulated assets or advantages used for economic or political gain

Fairness, impartiality, or justice as determined in light of "natural law" or "natural right".

The money invested in a corporation, including debt and equity.

(legal) Various related senses originating with the Court of Chancery in late Medieval England

Net worth.

(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.

Capital stock.

(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.

Capitalists considered as a group or class.

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.

A capital letter.

(finance) Various senses related to net value

The top part of a pillar or column, typically having an ornamental design.

Value of property minus liens or other encumbrances.

First and foremost; principal

(business) Ownership, especially in terms of net monetary value of some business.

First-rate; excellent

(accounting) Ownership interest in a company as determined by subtracting liabilities from assets.

Relating to or being a seat of government.

(poker) A player's expected share of the pot.

Extremely serious

(nonstandard) Equality

Of or relating to financial assets, especially being or related to those financial assets that add to the net worth of a business

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.

Relating to or being a capital letter.

An equitable claim; an equity of redemption; as, an equity to a settlement, or wife's equity, etc.

Already-produced durable goods available for use as a factor of production, such as steam shovels (equipment) and office buildings (structures).

A system of jurisprudence, supplemental to law, properly so called, and complemental of it.

Money and wealth. The means to acquire goods and services, especially in a non-barter system.

The difference between the market value of a property and the claims held against it

(countable) A city designated as a legislative seat by the government or some other authority, often the city in which the government is located; otherwise the most important city within a country or a subdivision of it.

The ownership interest of shareholders in a corporation

(countable) The most important city in the field specified.

Conformity with rules or standards;

(countable) An uppercase letter.

The uppermost part of a column.

(uncountable) Knowledge; awareness; proficiency.

The chief or most important thing.

Of prime importance.

Chief, in a political sense, as being the seat of the general government of a state or nation.

Excellent.

Uppercase.

Used to emphasise greatness or absoluteness

Of or relating to the head.

Of or pertaining to the head.

First in importance; chief; principal.

Chief, in a political sense, as being the seat of the general government of a state or nation; as, Washington and Paris are capital cities.

Of first rate quality; excellent; as, a capital speech or song.

The head or uppermost member of a column, pilaster, etc. It consists generally of three parts, abacus, bell (or vase), and necking. See these terms, and Column.

The seat of government; the chief city or town in a country; a metropolis.

That portion of the produce of industry, which may be directly employed either to support human beings or to assist in production.

Anything which can be used to increase one's power or influence.

An imaginary line dividing a bastion, ravelin, or other work, into two equal parts.

A chapter, or section, of a book.

Assets available for use in the production of further assets

Wealth in the form of money or property owned by a person or business and human resources of economic value

A seat of government

One of the large alphabetic characters used as the first letter in writing or printing proper names and sometimes for emphasis;

A book written by Karl Marx (1867) describing his economic theories

The upper part of a column that supports the entablature

First-rate;

Of primary important;

Uppercase;

Equity refers to ownership value in a business or asset, while capital is the total financial resources available.

Capital can be classified as debt or equity, along with reinvested earnings and borrowed funds.

No, equity can be negative if liabilities exceed assets.

Yes, equity is a component of capital, which also includes debt and other funding sources.

Companies can increase equity through profits, additional investment by owners, or asset appreciation.

Equity is generally riskier as it depends on business performance and has residual claims.

Working capital is the capital available in the short term to manage day-to-day operations.

Startups need capital to scale operations, develop products, and compete in the market.

Yes, if an individual’s debts exceed the value of their assets, they have negative equity.

An increase in capital typically allows for expanded operations and potential growth.

In personal finance, equity is important as it represents an individual’s net worth or asset value after liabilities.

Yes, if a business incurs losses or depletes its assets, its capital can decrease.

Yes, dividends are returns paid to equity holders out of the company’s profits.

Capital can be raised through equity, debt issuance, or internal generation like retained earnings.

In bankruptcy, equity holders are the last to be paid, after all other creditors.