Definition of Shareholders Equity

Shareholders Equity is the value of a corporation after subtracting all of its liabilities. A corporation’s net worth is also equal to shareholder’s equity.

Applying "Shareholders Equity" to Securities Exams:

A corporation’s assets and liabilities are found on their balance sheet. A balance sheet is simply a snapshot of a company at a particular point in time. Shareholder’s equity measures the value of the common stockholder’s ownership at the time the balance sheet is created.

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