It is important to understand that although balance sheet equity represents the company's net worth, the company's shares are ultimately worth only what buyers. Equity can have somewhat different meanings, depending on the context and the value of securities in a margin account minus what has been borrowed from. Home equity is the value of a homeowner's interest in a home. It is the market value minus any loan balances secured by the home. Mezzanine debt is a private loan, usually provided by a commercial bank or a mezzanine venture capital firm. Thanks and regards, Ramanuj Singh. Assuming a situation where lot of people are buying shares of a small company then if company register loss in business then also invester may get good return because of price appreciation. Negative shareholders' equity is often referred to as a shareholders' deficit. Thank you in advance. A calculation can be made to assess whether an equity is over or underpriced, compared with a long-term government bond. Thank you for this nice post. You have got to die deaths and egos in order to be a good trader. Updated July 02, See also book equity. How many of us really think of equities for long horizon.? Equity give you two kind of return, one is speculative and another is fundamental growth.