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What is stockholder's equity?

Updated: 4/28/2022
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9y ago

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Stockholder's equity is often the term used to refer to the value of a company. This is the amount that can be found on the business balance sheet when taking the assets of the company and subtracting the company's preferred stock, intangible assets, and other liabilities.

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9y ago
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15y ago

Book Value of a company; assets-liabilities.

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Q: What is stockholder's equity?
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Related questions

Do Revenues represent decreases in stockholders' equity?

no, they represent increases in stockholders' equity.


How do cash dividends affect stockholders equity and how would a stock dividend affect stockholders equity?

They do not.


Dividends is what type of account?

Dividends are classified as stockholders' equity. They reduce stockholders' equity so they can also be called a contra equity account.


Net worth is equal to a stockholders equity plus what?

Net worth is equal to stockholders' equity minus liabilities.


What is The denominator in the calculation of the ratio of liabilities to stockholders' equity?

The denominator is the stockholders' (assuming there is more than one stockholder) equity


How do you compute a Return on common stockholders equity?

(Net Income - Preferred Stock Dividends) / Average common stockholders' equity


What items affect stockholders equity?

Stockholders Equity is increase by profits and the issuance of new stock. Stockholders Equity is reduced by losses, the payment of dividends and the purchase of Treasury Stock (the company's re-purchase of its own stock).


Does expenses increase stockholders' equity?

no


Where does a corporation get its equity capital from?

From stockholder's equity which is the money the corporation's stockholders invest.


Where does a corporation gets it equity from?

From stockholder's equity which is the money the corporation's stockholders invest.


How is the stockholders' equity section of a corporate balance sheet different from that in a single-owner business?

Stockholders' equity is to a corporation what owner's equity is to a sole proprietorship. Owners of a corporation are called stockholders (or shareholders), because they own (or hold) shares of the company's stock. Stock certificates are paper evidence of ownership in a corporation. For sole proprietorship stocks usually are not issued. Examples of stockholders' equity accounts include: - Common Stock - Preferred Stock - Paid-in Capital in Excess of Par Value - Paid-in Capital from Treasury Stock - Retained Earnings - Etc. Both owner's equity and stockholders' equity accounts will normally have CREDIT balances. How stockholders' equity is reflected in the balance sheet? The stockholders' equity section of a corporation's balance sheet is: - Paid-in Capital - Retained Earnings - Treasury Stock The stockholders' equity section of a corporation's balance sheet is: STOCKHOLDERS' EQUITY Paid-in Capital ..Preferred Stock ..Common Stock ..Paid-in Capital in Excess of Par Value - Preferred Stock ..Paid-in Capital in Excess of Par Value - Common Stock ..Paid-in Capital from Treasury Stock Retained Earnings Less: Treasury Stock ..TOTAL STOCKHOLDERS' EQUITY


Who are stockholders in a corporation?

Stockholders are people who have purchased (or have been granted) shares of equity in the ownership of the company.