Equity: Understanding Its Diverse Forms and Significance in Finance and Society
- Equity in a company: Represents ownership through shares.
- Home equity: The difference between a home's value and the outstanding mortgage balance.
- Equity financing: Raising capital by selling ownership shares.
Asset | Value | Liability | Equity |
|---|---|---|---|
House | $500,000 | $200,000 (Mortgage) | $300,000 |
Company | $1,000,000 | $300,000 (Debt) | $700,000 |
Asset | Value | Liability | Equity |
|---|---|---|---|
House | $500,000 | $200,000 (Mortgage) | $300,000 |
Company | $1,000,000 | $300,000 (Debt) | $700,000 |
- Equal access to education and healthcare.
- Fair treatment under the law.
- Opportunities for economic advancement, regardless of background.
Principle | Definition | Example |
|---|---|---|
Equality | Treating everyone the same. | Giving everyone the same size shoe. |
Equity | Giving everyone what they need to succeed. | Giving people shoes that fit them properly. |
Principle | Definition | Example |
|---|---|---|
Equality | Treating everyone the same. | Giving everyone the same size shoe. |
Equity | Giving everyone what they need to succeed. | Giving people shoes that fit them properly. |
- Equality: Sameness; providing the same to everyone.
- Equity: Fairness; adjusting for needs and circumstances to achieve equal outcomes.
- Equity recognizes systemic barriers and addresses them.
Concept | Focus | Goal | Example |
|---|---|---|---|
Equality | Equal treatment | Sameness of opportunity | Providing everyone with the same resources |
Equity | Fair treatment | Equal outcomes | Providing resources based on individual needs |
Concept | Focus | Goal | Example |
|---|---|---|---|
Equality | Equal treatment | Sameness of opportunity | Providing everyone with the same resources |
Equity | Fair treatment | Equal outcomes | Providing resources based on individual needs |
- Finance: Drives investment and economic growth.
- Healthcare: Ensures access to quality care for all.
- Education: Promotes social mobility and opportunity.
Sector | Importance of Equity | Benefits |
|---|---|---|
Finance | Provides capital and ownership | Economic growth, wealth creation |
Healthcare | Ensures access to care | Improved health outcomes, reduced disparities |
Education | Promotes opportunity | Increased social mobility, empowered individuals |
Sector | Importance of Equity | Benefits |
|---|---|---|
Finance | Provides capital and ownership | Economic growth, wealth creation |
Healthcare | Ensures access to care | Improved health outcomes, reduced disparities |
Education | Promotes opportunity | Increased social mobility, empowered individuals |
- Address systemic inequalities through policy changes.
- Invest in early childhood education and affordable housing.
- Promote diversity and inclusion in all sectors.
Challenge | Strategy | Outcome |
|---|---|---|
Systemic Inequalities | Policy Reform | Level Playing Field |
Limited Resources | Targeted Investment | Increased Access |
Historical Biases | Diversity & Inclusion | Equitable Opportunities |
Challenge | Strategy | Outcome |
|---|---|---|
Systemic Inequalities | Policy Reform | Level Playing Field |
Limited Resources | Targeted Investment | Increased Access |
Historical Biases | Diversity & Inclusion | Equitable Opportunities |
