Answer Posted / nitika jain
In accounting and finance, equity is the residual claim or
interest of the most junior class of investors in assets,
after all liabilities are paid. If valuations placed on
assets do not exceed liabilities, negative equity exists. In
an accounting context, Shareholders' equity (or
stockholders' equity, shareholders' funds, shareholders'
capital or similar terms) represents the remaining interest
in assets of a company, spread among individual shareholders
of common or preferred stock.
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