Shareholders' Equity


Shareholders' Equity
A firm's total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity represents the amount by which a company is financed through common and preferred shares.

Shareholders' Equity

Also known as "share capital", "net worth" or "stockholders' equity".

Shareholders' equity comes from two main sources. The first and original source is the money that was originally invested in the company, along with any additional investments made thereafter. The second comes from retained earnings which the company is able to accumulate over time through its operations. In most cases, the retained earnings portion is the largest component.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Shareholders' equity — This is a company s total assets minus total liabilities. A company s net worth is the same thing. The New York Times Financial Glossary * * * shareholders equity shareholders equity ➔ equity * * *    ► See Shareholders Funds. * * * shareholders… …   Financial and business terms

  • shareholders' equity — This is a company s total assets minus total liabilities ( liability). A company s net worth is the same thing. Bloomberg Financial Dictionary * * * shareholders equity shareholders equity ➔ equity * * *    ► See Shareholders Funds. * * * …   Financial and business terms

  • shareholders' equity — shareholders funds The share capital and reserves of a company. Financial Reporting Standard (FRS) 4, Capital Instruments, requires that share capital be split into equity shares and non equity shares. The latest regulations are found in FRS 25,… …   Accounting dictionary

  • shareholders' equity — shareholders funds The share capital and reserves of a company. Financial Reporting Standard (FRS) 4, Capital Instruments, requires that share capital be split into equity capital and non equity shares The latest regulations are found in FRS 25,… …   Big dictionary of business and management

  • shareholders’ equity — /ˌʃeəhəυldəz ekwɪti/ noun 1. the value of a company which is the property of its ordinary shareholders (the company’s assets less its liabilities) 2. a company’s capital which is invested by shareholders, who thus become owners of the company …   Dictionary of banking and finance

  • ordinary shareholders' equity — ordinary shareholders funds The value of the assets of a company net of its liabilities and any amounts of capital due to holders of shares other than ordinary shares (e.g. preference shares). If the company were to go into liquidation this would …   Accounting dictionary

  • shareholders' funds — shareholders equity …   Accounting dictionary

  • equity — [ek′wit ē] n. pl. equities [ME equite < OFr équité < L aequitas, equality < aequus: see EQUAL] 1. fairness; impartiality; justice 2. anything that is fair or equitable ☆ 3. the value of property beyond the total amount owed on it in… …   English World dictionary

  • Equity — can refer to:General* Equity (law), a branch of jurisprudence in common law jurisdictions * In many political and legal systems, a concept encompassing ideals of justice (fairness) and/or equality * Equality, the philosophical ideal of valuing… …   Wikipedia

  • Equity (finance) — For equity securities, see Stock. Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management  …   Wikipedia


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