Adam owes $125,000 on his home. It's currently worth $340,000. $215,000 is the equity does Adam have in his home.
Equity is the value that would be given back to a company's shareholders if all of the company's assets were sold off and all of its debts were settled. Another way to conceive of equity is as the amount of ownership that remains in a company or asset after all associated debts have been paid off.
Cash is a form of currency that may be utilized for transactions right now, as opposed to equity, which must wait. This could involve investing in stocks, real estate, a car, food, etc. The cash worth of an asset is its equity, which is not yet converted into a currency.
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