Example of Owners Equity

Owner's equity is a legally defined proportionate holding in property. Equity is primarily used as a basis of calculation of entitlements. The value of those entitlements is determined by relative equity. If a property is worth $100, and there are five owners, one of whom owns 50%, one 20%, three own 10%. If the property is sold at $100 dollars, they get the same amount in dollars as their percentages. If sold at higher or lower values, they get higher or lower dollar values relative to their equity.

• Freehold equity between multiple owners of property
• Shareholding as equity
• Stock as equity
• Cooperative holdings as jointly held equity
• Equity through legal arrangement apportioning entitlements to ownership
• Home equity as held relative to the value of a home mortgage