Equity for Europeans

If you spend enough time in US business or finance conversations, one word keeps showing up: equity. Coming from a German-speaking, central European background, I found it surprisingly hard to fully internalize what that word means. More than that, I find it very hard to talk with other Europeans about it. Worst of all it’s almost impossible to explain it in German without either sounding overly technical or losing an important part of the meaning. This post is in English, but it is written mostly for readers in Germany, Austria, and Switzerland, and more broadly for people from continental Europe. I move between “German-speaking” and “continental European” a bit. They are not the same thing, of course, but many continental European countries share a civil-law background that differs sharply from the English common-law and equity tradition. The words differ by language and jurisdiction, but the conceptual gap I am interested in shows up in similar ways. In US usage, the word “equity”…