What Is Shareholders Equity (SE)?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Shareholders Equity, or SE, is the amount of a company that is financed through shareholder investments such as Common Stock and preferred shares. It is made up of money invested in the company and Retained Earnings (this is usually the largest component).

There are two means of calculating shareholders equity:

  • Total Assets - Total Liabilities
  • Share Capital + Retained Earnings - Treasury Shares

Shareholders Equity is part of the Balance Sheet and along with liabilities, represents what has been put into the company. Shareholders Equity and Total Liabilities must always equal Total Assets.

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Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.