What does equity mean in a business context?

Equity in business is the monetary value that a company holds in the event of liquidation, and all debts are paid, which is then returned to shareholders. In the case of an acquisition, equity is the value of company sales after subtracting any liabilities not passed on with the sale. Shareholder equity may also represent a company‘s book value and ownership of shares. Data and financial analysts use equity data to assess a company‘s financial health, which can be found on a company‘s balance sheet.