/

Equity

Equity

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

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

More terms

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Internal Rate of Return (IRR)

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

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Global Investment Performance Standards (GIPS)

A set of standards which investors use to present their investment results.

Inflation

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

Equity

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

Accounting standards

The rules a company follows when preparing financial statements.

Diversification

An investment strategy in which money is put into a variety assets.

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.