I have one question regarding shareholder's equity
Can Shareholder's equity be negative in amount?
Can You clarify with an example? and clarify whether shareholder's equity is equal to Net Worth of the company?
Your answer is most expected...
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Share Holders' Equity - Reg.
Replies (1)
Networth of the equity holder can be negative.
Share holders equity is nothing but the sum total of equity capital they have contributed plus/ minus the accumulated profit /losses sofar. If the accumulated losses is more than the capital obviously it is the case of negative networth.
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