What is 'equity'? Definition & meaning

More terms

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Stock Market

A place where shares of publicly listed companies are traded.

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.

Depository

We look at what is a depository and what role they play in keeping markets work.

Equity ETF

An exchange-traded fund that is comprised of a set of stocks.

SPAC

Find our what a SPAc or special purpose acquisition company is.

Diversification

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

Gross Margin

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

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

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).

Equity