Stockholders' equity

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Stockholders' equity is the phenomenon that represents the amount that stockholders paid the company when shares were purchased and the amount of earnings the company has retained since its origination.


Definitions

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Stockholders' equity. It represents the amount that stockholders paid the company when shares were purchased and the amount of earnings the company has retained since its origination.

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