Important Equity - Deepstash

Important Equity

Equity is equal to assets minus liabilities, and it represents how much the company's shareholders actually have a claim to. Investors should pay particular attention to retained earnings and paid-in capital under the equity section.

Paid-in capital represents the initial investment amount paid by shareholders for their ownership interest. Compare this to additional paid-in capital to show the equity premium investors paid above par value. Equity considerations are among the top concerns when institutional investors and private funding groups consider a business purchase or merger.

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"A good plan violently executed now is better than a perfect plan executed next week." - Patton

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