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Equity usually refers to the portion of company that can be claimed by its owners, often in the form of common or preferred stock, but also in the form of an ownership stake in the case of entities like partnerships and LLCs.

Equity is the risk-bearing part of the company's capital and is different from debt capital which is often secured in some way and which has priority over equity holders if the company becomes insolvent and its assets must be liquidated and distributed.

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