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How to Calculate Stockholders' Equity for a Balance Sheet

By Motley Fool StaffUpdated Apr 30, 2025 at 4:50 PM

Key Points

  • Stockholders' equity equals assets minus liabilities, framing investor stake after creditors.
  • Paid-in capital includes monies from stock sales, often split into par value and excess amounts.
  • Retained earnings accumulate as undistributed profit, funding future investments or expansions.

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