Equity referred to as shareholders' equity or owners' equity for privately held companies represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation.
Shareholder equity can represent the book value of a company. Equity can sometimes be offered as payment-in-kind. It also represents the pro-rata ownership of a company's shares.
Equity is used as capital raised by a company, which is then used to purchase assets, invest in projects, and fund operations.
Investors usually seek out equity investments as it provides a greater opportunity to share in the profits and growth of a firm.

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