Question

What are the 2 types of equity?

Answer 1

The two types of equity are stockholders equity and owner’s equity. These two terms are interchangeably used.

• Stockholders equity: the total amount of assets that are remaining after paying all debts and liabilities is called shareholder’s equity.
• Owner’s equity: it is the right of the owner to possess the business assets after providing all the expenses and liabilities from the assets.

Also see:

• What Are Equity Shares?
• Difference Between Venture Capital and Private Equity