# Shareholders' Equity

*Accounting & Reporting — Finicade finance glossary*

Shareholders' equity is assets minus liabilities — the owners' residual claim, and the balancing figure of the balance sheet. It's a book number that can diverge wildly from market value, because intangibles built internally are largely absent from it while acquired ones are not. Aggressive buybacks can even push it negative without the business being in any trouble.

**Formula:** `Shareholders' equity = Total assets − Total liabilities`

**Also known as:** stockholders equity, book value of equity, net assets

**Related terms:** [Balance Sheet](https://finicade.com/glossary/balance-sheet), [Retained Earnings](https://finicade.com/glossary/retained-earnings), [Book Value](https://finicade.com/glossary/book-value), [Treasury Stock](https://finicade.com/glossary/treasury-stock), [Debt-to-Equity Ratio](https://finicade.com/glossary/debt-to-equity-ratio)

Source: https://finicade.com/glossary/shareholders-equity