In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists. In an accounting context, Shareholders’ equity (or stockholders’ equity, shareholders’ funds, shareholders’ capital or similar terms) represents the remaining interest in assets of a company, spread among individual shareholders of common or preferred stock.
Join Our Newsletter
- 3,340,811 all-time readers
- Why Your Negotiations Are Doomed (And How to Rescue Them) December 2, 2019
- 11 Amazing Examples of Disruptive Technology
- Workplace Culture: How to Encourage Collaboration
- What Is Social Marketing? And How Does It Work?
- 17 Great Examples of Effective Leadership and Strategy
- 43 of Britain's Oldest Companies, From Rolls-Royce to Burberry, Still in Business After 100-Years
- 6 Key Attitudes and Behaviors of Successful Leaders
- Five Fundamental Principles From Adam Grant's "Give and Take" Book
- The History of PayPal (Infographic Included)
- Analytical Thinking: 8 Natural Talents Leading to Action