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...
Raghavendran K (Student ) (37 Points)
22 September 2008I 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...
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 22 September 2008
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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