Equity is the difference between a limited company's assets and liabilities — the part of the company the owners themselves stand behind. It consists partly of the share capital and retained profits.
Equity is split into restricted (including share capital, which may not be distributed) and unrestricted equity (which can be used for dividends). The size of equity affects, among other things, the net asset value.
Net asset value is the value of a company's assets minus its liabilities.
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Share capital is the capital the shareholders contribute to a company in exchange for shares.
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Unrestricted equity is the part of equity that may be distributed to shareholders.
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Book value per share is a limited company's equity divided by the number of outstanding shares.
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