Shareholder's equity
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In business and accounting, the shareholders' equity refers to the amount of assets that are owned by a company's shareholders.
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Accounting
The shareholder's equity can be calculated as the value of a company's assets less the value of its liabilities. Shareholders' equity appears on the liability side of a company's balance sheet.
Accounts
Accounts listed under shareholders' equity include (example ([1] (http://finance.yahoo.com/q/bs?s=C&annual))):
- Stock options
- Stock capital (share capital) (can include redeemable preferred stock, preferred stock, common stock)
- Retained earnings
- Treasury stock
- Capital surplus (stock capital, share capital, paid in capital)
Financing
Equity financing is the method by which a company raises money by selling shares, for example through an IPO.