equity

EK-wih-tee /ˈɛkwɪti/
nounB2GRESATGMAT
LegalFinancialSocial Justice

The quality of being fair and impartial; also, the value of an ownership interest in property or a business.

Unlike 'equality' (giving everyone the same thing), 'equity' involves giving people what they need to reach an equal outcome.

The story behind the word. In Roman law, 'aequitas' was the spirit of the law—the sense of fairness that corrected the harshness of the literal written law. It suggests a 'leveling' of the playing field.

Word relationships

  • fairness: Fairness is a general term, while equity often implies a system of justice that supplements the law.
  • inequity: Inequity refers specifically to unfairness or injustice in a system.

Commonly confused with

  • equality: Equality is about sameness (everyone gets the same); equity is about fairness (everyone gets what they need).

Word family

  • equitable (adjective): Fair and impartial.

Collocations

  • brand equity
  • home equity
  • social equity
  • achieve equity

Example sentences

  • "Equity will not suffer a wrong to be without a remedy." Legal Philosophy
  • "The school board aimed for educational equity by providing extra resources to underfunded districts." Social Policy

Memory hook

Think of the 'equi-' in 'equilibrium'. Equity is about keeping the scales of justice balanced and level. Equity is the 'Equalizer'.

When not to use

Do not use when you simply mean 'the same amount for everyone'; that is 'equality'.

Fun facts

  • In finance, equity represents your 'fair share' of a company's value.

Related words

equitable, justice

LangBlitz
Take your vocabulary further with LangBlitz

Our English vocabulary app: FSRS spaced repetition, 5,000+ curated words across 119 topic groups, CEFR A1 to C2. Explore your mastery with the beautiful Vocabulary World feature.