equity
Posted: 27 January 2014 01:52 PM   [ Ignore ]
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So what was the path by which this word, originally meaning fairness or equality, came to mean “the value of an ownership interest in property, including shareholders’ equity in a business”?

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Posted: 27 January 2014 02:23 PM   [ Ignore ]   [ # 1 ]
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It’s from the sense (OED definition 5) “An equitable right, i.e. one recognizable by a court of equity.” This is subentry 5c (orig. U.S.); the first cite is:

1904 E. S. Meade in Polit. Sci. Q. Mar. 50 Its preferred stock is quoted at..prices which indicate a general conviction that the equity in the company is worth little.

[ Edited: 27 January 2014 02:25 PM by languagehat ]
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Posted: 27 January 2014 03:54 PM   [ Ignore ]   [ # 2 ]
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Thanks

Thanksthanksthanks

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Posted: 27 January 2014 05:44 PM   [ Ignore ]   [ # 3 ]
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In essence, it seems to be an extension of the concept of “fairness” to “fair share” and thence to “value of one’s share”.

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Posted: 27 January 2014 07:55 PM   [ Ignore ]   [ # 4 ]
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Well said, Doc.

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