![]() ![]() The document breaks down the value of stockholders’ ownership interest in a company during a specific accounting period, typically measuring any changes from the beginning to the end of the year. The Corporate Finance Institute explains that the stockholders’ equity statement is part of a company’s balance sheet, consisting of share capital and retained earnings, or assets minus liabilities. Our guide will both define and explain the components of a stockholders’ equity statement. However, if you are publicly owned (or if your private company has investors with equity in the business), you’ll want to understand what goes into creating this document so you can ensure you’re including the right information. Privately owned companies do not always have stockholders, so if your private business has never sold any equity shares, you won’t have to create a stockholders’ equity statement. To do so, you should create a stockholders’ equity statement, which is a financial document that outlines your total capital per shareholder. As a business, it’s important to highlight these amounts and their changes throughout a given period of time - typically from the beginning to the end of the year. Stockholders’ equity, also known as shareholders' equity, represents the value of each stockholder’s ownership or share of a given company. ![]() ![]() A stockholders' equity statement breaks down the value of stockholders’ ownership interest in a company during a specific accounting period. ![]()
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