Stockholders’ Equity or Shareholders’ Equity and Its Value for Investors

Shailesh Kumar
Value Stock Guide
Published in
4 min readDec 2, 2019

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Owner’s Equity Needs to Grow

Stockholders’ equity, or Shareholders’ equity, is the net worth of the company. Just like you and I calculate our networth as total assets minus total liabilities, a company’s net worth is also expressed as

Stockholders’ Equity = Total Assets — Total Liabilities

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