Answer :
Final answer:
Equity in a company serves as a margin of safety for investors, representing the ownership stake held by equity holders.
Explanation:
Equity in a company represents the ownership stake held by equity holders, typically common stock holders. It serves as a margin of safety for investors, indicating the value of assets not owed to creditors. By looking at equity as a margin of safety, common stock holders can assess the value and potential returns of their investments.
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