# equity

/ˈɛkwəti/ (US) · /ˈɛkwɪti/ (UK)

Source: https://englishreference.com/word/equity
Updated: 2026-08-15

## Senses

### 1. fairness and justice

noun · CEFR B2

the quality of being fair and impartial, making sure everyone has what they need to succeed.

For teachers: the quality of being fair and impartial; justice according to natural law or right, often contrasted with mere equality of treatment.

- The new school policy aims to improve equity by providing extra laptops to students who cannot afford them.
- The government's commitment to social equity was tested when it had to decide how to distribute healthcare resources across diverse socioeconomic regions.

### 2. value of an asset

noun · CEFR C1 · Technical

the value of a property or business after you subtract the money owed on it.

For teachers: the residual value of an asset after all liabilities and debts associated with it have been deducted.

- After paying his mortgage for ten years, he had built up a lot of equity in his house.
- The founders were reluctant to give up more equity in the company, fearing they would lose controlling interest to the venture capitalists.

Usage: Uncountable when referring to the general concept of value; countable when referring to specific shares.

### 3. stocks and shares

noun · CEFR C1 · Technical

shares in a company that people buy as investments.

For teachers: stocks or any other security representing an ownership interest in a company.

- She decided to invest her savings in equities because they usually offer better long-term returns.
- Market analysts observed a significant shift from bonds to equities as investor confidence in the tech sector began to recover.

### 4. legal system

noun · CEFR C2 · Formal · Technical

a specific set of legal rules used to provide fair results when strict laws are too harsh.

For teachers: a branch of law that developed in the English Court of Chancery to provide remedies where the common law was inadequate.

- The judge looked to the principles of equity to find a fair solution that the written law did not cover.
- In this jurisdiction, the rules of equity prevail over the common law in cases where there is a direct conflict between the two.

## Examples

- The couple built up equity in their home over ten years.
- The startup offered its early employees equity in the company to compensate for lower initial salaries.
- Achieving true social equity requires more than just equal treatment; it demands a targeted redistribution of resources to address historical disadvantages and systemic barriers.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.