foshizzle LSU Fan Washington DC metro Member since Mar 2008 27213 posts Online
re: How exactly does equity work? (Posted on 2/22/13 at 7:20 am to RandySavage)
It refers to the old accounting definition of assets = liabilities + equity. It applies to basically any economic entity, not just housing. Equity is what is left over after liabilities are taken care of.
It's what the owner has in the game, basically. In cases where there is no owner (nonprofits, government) it is called "net position" instead.