Equity definition

I’m trying to learn the definition of equity and I don’t get the definition given below. I understand what equity is but am struggling to word it so that I can convey it in the exam.

Equity: a contract that evidences a residual interest in the asset of an entity after deducting all of its liabilities.

Can I say it in simpler words.

I also have a note to say equity is an issue of shares but no obligation to pay dividends.

Would this be enough to define equity.