Link Equity: Link Equity measures how strong or relevant a site is based on the number of inbound links from other sources and the authority of those sources. It's also commonly referred to as page rank.
Link equity is an important component of off-page SEO. The links may go to any given page on your website, but to improve rankings, links must come from valuable sources that have authority online. For instance, a link in a CNN article would have much more weight then a link from a local online paper or generic wordpress blog.
An easy way to gain link equity is by using blogs where users are allowed to rank content. This generate a useful inbound link. You can also request links from other sites like directories or industry listings to create more inbound links.
This means that simply building links from any source is not enough to obtain link equity. A single inbound link from a reputable source can be worth more in terms of SEO than dozens of links from websites without authority, but it's a good practice to have a balance of both.
Building link equity can be a great way to enhance any SEO strategy.