The meaning and definition of Equity - In a broker
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Posted On: 03/15/2013 11:54:30 PM
The meaning and definition of Equity -
In a brokerage account, equity refers to the market value of securities held in a given account. Equity is determined by deducting market value of short positions from the market value of long positions. Any outstanding debit balances or credit balances are also factored in.
When referring to corporate ownership, equity is the ownership interest of common and preferred shareholders in a corporation.
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