What is shareholder’s equity?

Shareholder’s equity is also know as net worth or book value. In different fields of finance shareholder’s equity means different things, for example if we’re talking about stocks and interests then an investor having ownership interest in a particular corporation is in the form of common stock or preferred stock. This term can also mean the total assets and decreasing the total liabilities from that value this also gives us the shareholder’s equity. In the case of future trading accounts this is calculated by the value of future securities anticipating that they will be sold at a good price. In the case of a brokerage account the shareholder’s equity means the net value of the account and subtracting the margin requirements. Might be used as fairness in law.