"Equity": 1. Law. A legal system that resolves disputes between persons by resort to principles of fairness and justness. 2. The capital of a firm invested by those accepting the greatest degree of risk, for example the holders of ordinary shares (also known as common stock) in a company. 3. Securities representing the rights of the risk capital investors in 2. above. 4. The net value of an asset, after deducting debt relating to it or secured on it.