The term "equity" has multiple meanings, depending on the context. In connection with real estate, equity refers to the current value of the property less any mortgage on the property (in essence the net cash the seller would receive on sale of the property and pay off the mortgage). In the corporate finance context, "equity" means an ownership interest in an entity, such as stock. The term "shareholder's equity" refers to the amount of the funds contributed by the shareholders of a corporation plus the retained earnings (or losses) of the corporation, as shown on its balance sheet.