In business and accounting, the shareholders' equity refers to the amount of assets that are owned by a company's shareholders.

Accounting

The shareholder's equity can be calculated as the value of a company's assets less the value of its liabilities. Shareholders' equity appears on the liability side of a company's balance sheet.

Accounts

Accounts listed under shareholders' equity include (example ([1] (http://finance.yahoo.com/q/bs?s=C&annual))):

• Stock options
• Stock capital (share capital) (can include redeemable preferred stock, preferred stock, common stock)
• Retained earnings
• Treasury stock
• Capital surplus (stock capital, share capital, paid in capital)

Financing

Equity financing is the method by which a company raises money by selling shares, for example through an IPO.

See also

• Equity levels and flows
• Equity market
• Ownership equity