Equity 
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)                                

This term has three meanings:

1.  In Anglo-American legal parlance, the administration of justice, not through the inflexible
     procedures of the law courts, but through the principles of equitable justice developed by
     Chancery.  Thus there are Courts of Law and Courts of Equity and it is possible to bring an
     action and obtain specific performance or other special relief through a Court of Equity
     when an adequate remedy is not available in a Court of Law.

2.  In accounting and finance, net ownership, i.e., the extent of the owner’s right in property
     above all claims and liens against it expressed in money value.  Thus the equity of the
     stockholders in a railroad corporation is represented by the value of the bond and note
     holders, secured and unsecured, and all current indebtedness.

3.  In margin buying, the customer’s equity is the present market value of his securities less the
     debit balance in his account, i.e., the sum borrowed from the broker to enable the customer
     to make the purchase.

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