Stockholders' Equity

Definition: Stockholders' Equity (also called Shareholders' Equity or Owners' Equity for non-corporate entities) is the residual interest in the assets of a co…

Stockholders' Equity (also called Shareholders' Equity or Owners' Equity for non-corporate entities) is the residual interest in the assets of a corporation after deducting all liabilities. It is the corporation-specific form of Equity and equals Total Assets − Total Liabilities. Major components are: (1) Contributed Capital — common stock at par, preferred stock, and additional paid-in capital from share issuances; (2) Retained Earnings — cumulative net income not paid out as dividends; (3) Accumulated Other Comprehensive Income — unrealized gains/losses on items like foreign currency translation, available-for-sale securities, and pension adjustments; and (4) Treasury Stock — a contra-equity account for repurchased shares. Reported on the balance sheet and detailed in the Statement of Stockholders' Equity.