What is 'equity'? Definition & meaning

More terms

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.

Stock Market

A place where shares of publicly listed companies are traded.

Investment Return

The amount of money made or lost from an investment. Usually expressed as a percentage.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Volatility

A measure of how much the prices of an asset or index vary over time.

Zero-Sum Game

A situation in which one person's gain is another's loss.

Income statement

A summary of a company's income and expenses over a set period of time.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Equity