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Q&A How did 'equity' semantically shift to signify 'Assets — Liabilities'?

Here I ask merely ask about Equity = Assets — Liabilities here, not its meaning as stock. 1. Why was 'equity' was adopted to describe this difference? equity: In the real-estate world, this ter...

0 answers  ·  posted 3y ago by PSTH‭  ·  edited 3y ago by PSTH‭

Question etymology
#2: Post edited by user avatar PSTH‭ · 2021-10-23T01:23:05Z (about 3 years ago)
#1: Initial revision by user avatar PSTH‭ · 2021-10-23T01:22:48Z (about 3 years ago)
How did 'equity' semantically shift to signify 'Assets — Liabilities'?
Here I ask merely ask about [Equity = Assets — Liabilities](https://en.wikipedia.org/wiki/Accounting_equation) here, not its meaning as stock. 1. Why was 'equity' was adopted to describe this [difference](https://en.wikipedia.org/wiki/Quotient)? 

>**equity**: 
In the real-estate world, this term refers to the difference between the market value of your home and what you owe on it. For example, if your home is worth $400,000, and you have an outstanding mortgage of $150,000, your equity is $250,000. *Equity* is also a synonym for *stock*. 

2. What semantic notions underlie 'Assets — Liabilities' with the [original Latinate meanings](https://www.etymonline.com/word/equity) of *equity* beneath, like the emboldened abstract nouns that I emboldened?

>early 14c., "quality of being equal or fair, impartiality in dealing with others," from Old French *equite* (13c.),    
 from Latin *aequitatem* (nominative *aequitas*) **"equality, uniformity, conformity, symmetry; fairness, equal rights**; kindness, moderation,"    
 from *aequus* "even, just, equal" (see [equal](https://www.etymonline.com/word/equal?ref=etymonline_crossreference) (adj.)).     
As the name of a system of law, 1590s, from Roman *naturalis aequitas*, the general principles of justice which corrected or supplemented the legal codes.