- Ownership of Assets
- May have debts or liabilities attached to them
- = value – liabilities
- Car worth 9k
- Owes 3k on loan
- 6k of equity
- Single item or entire business
- Single asset
- Purchased through a secured loan
- Lender can repossess on default
- Only to recover unpaid amount
- Equity measures buyers partial ownership
- Single asset
- Shareholder’s equity
- Interest when owners of firm are shareholders
- Liabilities > value
- Difference is deficit
- Underwater/upside-down