For corporations, shareholder equity (SE), also referred to as stockholders' equity, is the corporation's owners' residual claim on assets after debts have been paid. Shareholder equity is equal to a firm's total assets minus its total liabilities.

Where is shareholders equity on balance sheet?

The shareholders' equity is the remaining amount of assets available to shareholders after the debts and other liabilities have been paid. The stockholders' equity subtotal is located in the bottom half of the balance sheet.

What is the equity of shareholders?

Shareholders' equity (or business net worth) shows how much the owners of a company have invested in the business—either by investing money in it or by retaining earnings over time. On the balance sheet, shareholders' equity is broken down into three categories: common shares, preferred shares and retained earnings.