Finance Shareholder Equity
Shareholder Equity: A Deep Dive
Shareholder equity, also known as stockholders’ equity or net worth, represents the residual interest in the assets of a company after deducting its liabilities. Simply put, it’s what would be left over for the shareholders if the company sold all its assets and paid off all its debts. It’s a fundamental component of the balance sheet equation: Assets = Liabilities + Equity.