Understanding Stockholders’ Equity

This certificate course on Stockholders’ Equity provides a comprehensive overview of how to assess shareholders’ equity. Learn to calculate stockholders’ equity by deducting total liabilities from total assets or by summing share capital and retained earnings while accounting for treasury shares. Explore common examples of stockholders’ equity accounts, including common stock, preferred stock, and retained earnings. Understand the four key components of shareholders’ equity: outstanding shares, additional paid-in capital, retained earnings, and treasury stock. A positive shareholders’ equity indicates that a company can meet its liabilities, while a negative figure suggests otherwise.