Equity | Practical Law

Equity | Practical Law

Equity

Equity

Practical Law Glossary Item 5-382-3436 (Approx. 2 pages)

Glossary

Equity

Also known as equity interests. An investment in an entity, such as capital stock, partnership interests and limited liability company interests, entitling the investor to a share of the entity's profits and enterprise value after the satisfaction of creditors' claims.
For a checklist that summarizes the factors that influence whether a particular security is classified as debt or equity for US federal income tax purposes, see Debt v. Equity Tax Classification Checklist.