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Types of Equity

Additional Paid-In Capital
Additional Paid-In Capital

Additional paid in capital is a value that is often included in the contributed surplus account in the shareholders' equity section of a company's balance sheet. Additional paid in capital is a value that is often included in the contributed surplus account in the shareholders' equity section of a company's balance sheet.

Capital Surplus
Capital Surplus

Capital surplus, also called share premium, is an account which may appear on a corporation's balance sheet, as a component of shareholders' equity, which represents the amount the corporation raises on the issue of shares in excess of their par value (nominal value) of the shares (common stock).

Common Stock
Common Stock

While "common" sounds rather ordinary, it is the common stockholders who elect the board of directors, vote on whether to have a merger with another company, and get huge returns on their investment if the corporation becomes successful.

Contributed Surplus
Contributed Surplus

Contributed surplus is the excess amount of capital from the issuance of shares above par value, which is recorded in the Shareholders' Equity account. Contributed surplus is the excess amount of capital from the issuance of shares above par value, which is recorded in the Shareholders' Equity account.

Preferred Stock
Preferred Stock

A preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shares generally have a dividend that must be paid out before dividends to common shareholders, and the shares usually do not carry voting rights.

Reserve
Reserve

In financial accounting, reserve is any part of shareholders' equity, except for basic share capital. In nonprofit accounting, an "operating reserve" is the unrestricted cash on hand available to sustain an organization, and nonprofit boards usually specify a target of maintaining several months of operating cash or a percentage of their annual income, called an Operating Reserve Ratio.

Retained Earnings
Retained Earnings

The concepts of owner's equity and retained earnings are used to represent the ownership of a business and can relate to different forms of businesses. Owner's equity is a category of accounts representing the business owner's share of the company, and retained earnings applies to corporations.

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Share Capital (Common Stock)
Share Capital (Common Stock)

Share capital consists of all funds raised by a company in exchange for shares of either common or preferred shares of stock. The amount of share capital or equity financing a company has can change over time.

Stock Options
Stock Options

Options are derivatives, which means their value is derived from the value of an underlying investment. Most frequently the underlying investment on which an option is based is the equity shares in a publicly listed company.

source: nasdaq.com
Treasury Stock (Contra-Equity Account)
Treasury Stock (Contra-Equity Account)

contra equity account definition An owner's or stockholders' equity account with a debit balance instead of the normal credit balance. Examples include the owner's drawing account, a dividend account, and the treasury stock account.

Related Facts

Related Types