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  1. Home
  2. /Glossary
  3. /Equity
Back to Glossary
traditional-finance

Equity

Ownership stake in a company, represented as shares of stock.

Definition

Ownership stake in a company, represented as shares of stock. In crypto, tokens can sometimes represent equity-like interests, though this gets complicated with securities laws. Traditional startups give equity to employees. Crypto projects often give tokens instead, blurring the line between utility and ownership.

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Related Terms

Stocks

Shares representing partial ownership in a company.

IPO (Initial Public Offering)

When a private company first sells shares to the public on a stock exchange.

Valuation

An estimate of what an asset or company is worth.

Accredited Investor

Someone who meets specific income or net worth thresholds set by regulators, qualifying them for investments not available to the general public.

Anti-Money Laundering (AML)

Laws and procedures designed to prevent criminals from disguising illegal funds as legitimate income.

Asset Allocation

How you divide your investments across different asset classes like stocks, bonds, crypto, and cash.

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