Stockholders' equity
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.
