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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.

Examples of Owner's 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