What is 'Equity'? | Freetrade Dictionary

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

More terms

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

S&P 500

Find out what is the definition of the S&P 500 index.

Fundamentals

The data or information that is likely to impact a company's stock price.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

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.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

Quantitative easing

Find out what quantitative easing is and how central banks use this monetary measure to encourage economic growth.

Equity