Theresa just bought her first new home. She put 30% down and got a mortgage for the remainder. The difference between what Theresa owes and what her home is worth is known as what?

The correct answer is Equity

The concept of equity comes from basic accounting and its understanding can be very useful for the performance of a portfolio of financial investments. Thus we can say that equity, is the result of subtracting the value of assets minus the amount of all liabilities of a company. Although the concept of equity is widely used in corporate balance sheet analysis, this idea can also be applied to an investor's personal finances.