Shareholders’ equity

The shareholders’ equity of a company is show on the balance sheet and is defined as the excess between assets and liabilities. Shareholders’ equity consists of capital that a company has received from its legal owners. The providers of this equity (e.g. investors who own the stock) have other pretensions than providers of debt financing - for example, a higher return - because they assume a higher degree of risk, or because of their membership rights (e.g. voting rights) and a claim to the company’s assets (e.g. right to receive a dividend). The total amount of shareholders’ equity is also a determining factor for a listing on SIX Swiss Exchange AG.

See alsoDebt capital