equity

equity — noun

1. the principle that everyone should receive fair treatment based on their individ

1.nounB2
Definition

the principle that everyone should receive fair treatment based on their individual circumstances and needs, rather than identical treatment for all, so that no group is put at an unfair disadvantage.

Example

The school board introduced policies to promote equity among students from different backgrounds.

collocation: promote equity / equity among [group]

Obi argued that true equity requires giving extra support to those who need it most.

Common collocations
  • social equity
  • racial equity
  • gender equity
  • pay equity
  • equity in education
  • promote equity
  • achieve equity
  • health equity
Synonyms
  • fairness

    more everyday term; less precise in policy contexts but broadly equivalent

  • justice

    broader moral and legal scope; implies a system of rightness

  • impartiality

    emphasises lack of bias, rather than need-based distribution

Antonyms
  • inequality

    unequal distribution of resources or opportunities

  • injustice

    unfair treatment or outcomes

Grammar Patterns

equity + in + [context/field]

social equity

pay equity

racial equity

Usage Note

Common in discussions of social policy, education, workplace diversity, and public health. Equity differs from equality: equality gives everyone the same thing, while equity accounts for different starting points and needs.

Common Mistakes

Equity means giving everyone exactly the same resources.
Equity means giving people the resources they need to reach a fair outcome.
Equity considers individual circumstances; equality is about sameness of treatment.

2. the portion of a company's total value that is split into units called shares, w

2.nounB2
Definition

the portion of a company's total value that is split into units called shares, which people can buy to own part of the business and receive part of its profits.

Example

Padma invested in company equity and received dividends every quarter.

collocation: company equity / equity in [company]

The startup offered equity to attract talented engineers without paying high salaries.

collocation: offer equity / equity to attract

Common collocations
  • company equity
  • equity investment
  • equity capital
  • equity stake
  • equity market
  • sell equity
  • buy equity
  • equity growth
Synonyms
  • shares

    refers to the individual units of ownership; more concrete and countable

  • stock

    common term in North America; can be uncountable ('the stock')

  • ownership stake

    emphasises the proportion of the company owned

Antonyms
  • debt

    money borrowed that must be repaid, as opposed to ownership capital

Grammar Patterns

equity + in + [company/organisation]

equity is uncountable when referring to value; 'equities' = stocks

Usage Note

Often used in investing and corporate finance contexts. The plural form 'equities' is a synonym for stocks or shares.

Common Mistakes

I bought an equity in Apple.
I bought shares in Apple.
'Equity' is uncountable and refers to overall ownership structure; individual units are 'shares' or 'stock'.

3. the portion of a property's worth that the owner actually possesses, calculated

3.nounB2
Definition

the portion of a property's worth that the owner actually possesses, calculated as the difference between its market value and any outstanding debt, such as a mortgage, still owed on it.

Example

After ten years of mortgage payments, Brian had built significant equity in his house.

collocation: build up equity / equity in [house/property]

The bank approved a loan using the equity in Gabriela's home as collateral.

collocation: equity as collateral

Common collocations
  • home equity
  • property equity
  • equity loan
  • equity release
  • negative equity
  • build equity
  • borrow against equity
Synonyms
  • ownership value

    non-technical alternative emphasising what you truly own

  • net value

    focuses on the subtraction of debts from total worth

Grammar Patterns

equity + in + [property]

home equity

property equity

Usage Note

Frequently appears in mortgage, refinancing, and property investment contexts. Homeowners can borrow against their equity through 'equity loans' or 'equity release' schemes.

Common Mistakes

The equity of my apartment is $200,000.
I have $200,000 in equity in my apartment.
'Equity' is the portion you own, not the total value of the property.

4. a system of legal rules used in English-speaking countries that lets courts make

4.nounC1
Definition

a system of legal rules used in English-speaking countries that lets courts make fair decisions when normal written laws would cause an unfair result.

Example

The judge applied principles of equity to reach a fair outcome in the contract dispute.

collocation: principles of equity

In the 1400s, English equity courts handled land disputes that the common law could not resolve fairly.

Common collocations
  • court of equity
  • principles of equity
  • equity law
  • equity jurisdiction
  • equitable remedy
  • maxims of equity
Synonyms
  • fairness doctrine

    approximate description; less precise than 'equity' as a legal term

  • natural justice

    broader philosophical concept; related to but not identical with legal equity

Antonyms
  • common law

    the system of law based on precedent, which equity supplements

Grammar Patterns

court of equity

principles of equity

equity + law

Usage Note

A technical legal term referring specifically to the body of rules that originated in the English Court of Chancery. In modern legal systems, equity and common law are often administered by the same courts, but the principles of equity still apply when strict law would cause unfairness.

Common Mistakes

Equity in law means being fair in any court decision.
Equity is a specific legal system with established principles, not just general fairness in court.
Equity has formal rules and doctrines, not just a judge's personal sense of fairness.

Word family

  • equitable
    adjectiveC1
  • equitably
    adverbC1
  • inequity
    nounC1
  • inequitable
    adjectiveC1
  • inequitably
    adverbC2

Synonym discussion

Sense: noun/1

While all four words relate to fair treatment, they differ in scope and application. Fairness is the broadest everyday term, describing behaviour that is reasonable and just. Justice carries a stronger moral and legal weight, often implying a system of righting wrongs or punishing offences. Equality means giving everyone the same resources or opportunities, regardless of their starting point. Equity, by contrast, recognises that different people need different levels of support to reach a similar outcome. For example, giving every student the same exam time is equality, but giving extra time to a student with a learning disability is equity. Impartiality focuses specifically on the absence of bias or favouritism in decision-making.

fairness ↗justice ↗equality ↗impartiality

Common collocations

Nouns

Adverbs

Phrases

  • equity stake
  • equity investment
  • equity market
  • equity capital

Prepositions

Etymology

LatinFrenchEnglish

Equity comes from the Latin word 'aequitas', meaning equality or fairness, which derives from 'aequus' (level, even, or equal). It entered English through Old French 'equité' in the 14th century. The legal sense developed from the idea of natural justice that supplements written law, originating in the English Court of Chancery. The financial meaning emerged in the 17th century, extending from the legal concept of a fair claim or interest in property.