Equity Debit Or Credit is a term used in the financial services industry to describe transactions that modify the total amount of equity on an account. It is most commonly used to refer to investments such as stocks and bonds, but can also be applied to any asset held by a company. When a company has a debit transaction, it increases equity (or adds more value) to its balance sheet; while credit transactions decrease overall equity (or subtract value) from the company’s balance sheet. In either situation, the company must make sure that enough money is being debited or credited in order to keep the books in balance.