oboloo Glossary

Debit Equity

oboloo Glossary

Debit Equity

Debit Equity is an accounting term that refers to an increase in the ownership of a company by its shareholders. This happens when the company buys back some of its own shares, reducing the number of outstanding shares and resulting in increased shareholder value. When this occurs, the company’s shareholders have more equity – or ownership – in the company than they did before. In other words, Debit Equity allows shareholders to get more out of their investments with the same amount of capital. By investing in their own company, shareholders can be more confident about the future potential of their investment.