Stockholders' equity
Capital gain. The profit from the sale of a capital asset for more than its purchase price.
- Capital loss. The loss from the sale of a capital asset for less than its purchase price.
- Traditional IRAs. Individual retirement arrangements in which qualified contributions are tax deductible and income and capital gains on investments within the account are not taxed until the money is withdrawn after age 59½.
- Roth IRAs. Individual retirement arrangements in which contributions are not tax deductible but the future income and capital gains within these accounts are not taxed if the money is withdrawn after age 59½.
- Alternative minimum tax (AMT). Created by Congress to make it more difficult for wealthy individuals to avoid paying taxes through the use of various deductions.
- Carryback. Ordinary corporate operating losses can be carried backward for 2 years and carried forward for 20 years to offset taxable income in a given year.
- Carryforward. Ordinary corporate operating losses can be carried backward for 2 years and carried forward for 20 years to offset taxable income in a given year.
- S corporation. A small corporation that, under Subchapter S of the Internal Revenue Code, elects to be taxed as a proprietorship or a partnership yet retains limited liability and other benefits of the corporate form of organization.
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.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
