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Equity is a term used in accounting, real estate, investing, and startup financing. In accounting, equity is found on the balance sheet as the book value of shareholder capital. It represents what is left after subtracting liabilities from assets. For example, a company with a $1 million asset financed through an $800,000 bank loan and $200,000 in equity would have $200,000 in equity, owed to the owner. In summary, equity is the difference between a company's assets and liabilities, representing the owner's stake in the business.
