Equity Reserve
/ˈɛkwɪti rɪˌzɜrv/
Definitions
- (n.) A financial reserve created from surplus equity to cover future obligations or contingencies in corporate accounting.
The company allocated an equity reserve to safeguard against potential legal liabilities.
Forms
- equity reserve
Related terms
See also
Commentary
Equity reserve is primarily an accounting term related to corporate finance but has legal relevance in reporting and compliance contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.