An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits. An individual holding such an ownership in the firm does not enjoy the highest claim on the firm's earnings. Instead, an equity holder's claim is subordinated to creditor's claims, and the equity holder will only enjoy distributions from earnings after these higher priority claims are satisfied. Also known as equities or equity securities or corporate stock.