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Investments glossary

Stockholders’ Equity

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Quotes of the day:

Truth may be stretched, but cannot be broken, and always gets above falsehood, as oil does above water.

— Miguel de Cervantes

Stockholders’ equity, also referred to as shareholders’ equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm’s total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders’ equity might include common stock, paid-in capital, retained earnings and treasury stock.

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