Definition of equity: Fairness and impartiality towards all concerned, based on the principles of evenhanded dealing. Equity implies giving as much advantage, consideration, or latitude to one party Pop Quiz - What Does 'Total Profit' Mean ?. Equity is the value of an asset less the value of all liabilities on that asset. ownership of shares in a public company generally does not come with accompanying liabilities. . But in general, each meaning refers to ownership in an asset. Often the word equity is used when referring to an ownership interest in a business. Occasionally, equity is used to mean the combination of liabilities and How does the accounting equation stay in balance when the monthly rent is paid?.