Need explanation about shareholder’s equities
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helyn
Apprentice
Joined: 11 Jun 2007
Posts: 5
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 Posted: 06/23/08 - 07:13 Post subject: |
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| Someone please help! I am trying to familiarize myself with the method in which large and medium companies work, especially when it comes to financial returns. I have seen that balance sheets often mention something about shareholders' equities. Can you explain what this means please? I'd be really happy with your comments. |
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xymenes
Apprentice
Joined: 30 Nov 2005
Posts: 7
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| Posted: 07/22/08 - 22:50 Post subject: |
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| Shareholder equity is basically the equivalent of the net worth of the company, which has shareholders. You can find out what the total shareholder equity is buy taking the assets of the company in question and subtracting the liabilities from that. This simple sum will provide you with the shareholder equity. |
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