equity
Say it: EK-wih-tee /ˈɛkwəti/ · noun
What “equity” means
Owning a piece of a company.
More precisely: Ownership in a company, usually as shares; also, fairness.
Example: “Early employees often accept a lower salary in exchange for equity.”
When to use it
At work, when a share of a business is part of the deal, like a job offer or an investment.
Memory trick
Think “equal share”: your equity is your share of the company.
It can also mean
It can also mean fairness, as in “pay equity” (fair pay).
Similar words
ownership, shares, stake
Where it comes from
From Latin aequitas, "fairness," from aequus, "equal."
Quick check
Maya takes a smaller salary in return for 5% of the start-up. What did she get?
equity or a bonus?
Show the answer
equity
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