Equity Value

Equity value - Equity value, also known simply as equity refers to the different when liabilities are subtracted from the assets; what is left over is a company's equity. Equity value also refers to the interest, which is the amount a stockholder has invested in the shares of a company with regards to their ownership of common or preferred stock. Equity value is also known as shareholder's worth, book value, or net worth. Equity value in a brokerage account is the net worth of the account, or the value of the securities after any marginal requirements (what the investors must deposit in the account to meet legal requirements for selling short or buying on margin). In terms of a future's trading account it the net values after the agreed upon price has been set.