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Stockholder's equity

Definition:

The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Statement of condition

A document describing the status of assets, liabilities, and equity of a person or business at a particular time.

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