Shareholders Equity (SE)
In an accounting context, the assets of a company’s must be equal to (i.e. balance) its liabilities plus shareholders’ equity. As such, shareholders’ equity represents the company net assets (total assets minus total liabilities) i.e. its net value, the company’s residual value after all liabilities have been paid off. Shareholders’ equity consists of share capital (cf.) plus retained earnings, which is the portion of net income not paid out in dividends.