Definitions for "Owners' Equity"
The interest of shareholders or other owners in the assets of an entity. At any time, it is the cumulative net result of past transactions and other events and circumstances affecting the entity. In financial statements, owners' equity is shown as the recorded accountability of an entity to its owners. The characteristics of owner's equity are: it is a general interest in an entity's assets, not a claim to specific assets its amount is affected by the entity's operations and other events as well as by owners' investments in the entity and the entity's distributions to owners it is the interest that, perhaps in varying degrees, bears the ultimate risks of entity failure and reaps the ultimate rewards of entity success.
Stock provided by owners, plus accumulated Retained Earnings. (Also known as stockholders' equity or net worth.)
Any positive difference between a firm's assets and its liabilities; what would remain for a firm's owners if the company were liquidated, all its assets were sold, and all its debts were paid.
Keywords:  investment, company
The investment of the owners in the company.