Shareholder’s Equity

Posted in Finance, Accounting and Economics Terms, Total Reads: 835
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Definition: Shareholder’s Equity

In the balance sheet the difference between total assets and total liabilities is the shareholder’s equity.

Shareholder’s equity can also be calculated as the sum of the share capital and retained earnings minus the treasury share.

 

Shareholder’s equity = Total assets – Total Liability

Shareholder’s equity = Share Capital + Retained Earnings – Treasury shares


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