Is there a difference between common equity and shareholders equity?

Answer 1

Common equity refers to the outstanding common stock of a company. After the stock is issued and publicly traded, the value is determined by the market. The market value or market cap refers to the value of the outstanding stock as valued by the market.

Shareholders equity is an account on the balance sheet. Its basically assets minus liabilities. It reflects the financial health, or in some ways, the worth of the company. But its a purely accounting kind of value. The market cap is a much better valuation of the company than the shareholders equity.

Answer 2

Common equity refers to the outstanding common stock of a company. After the stock is issued and publicly traded, the value is determined by the market. The market value or market cap refers to the value of the outstanding stock as valued by the market.

Shareholders equity is an account on the balance sheet. Its basically assets minus liabilities. It reflects the financial health, or in some ways, the worth of the company. But its a purely accounting kind of value. The market cap is a much better valuation of the company than the shareholders equity.

Answer 3

Shareholder equity is the book value. It is the historical or stated cost in the case of stock. Shareholder value is the market value. It is what the shares are worth now. The book value can increase if additional stocks are issued, but this will not change the (market) value. That is simply determined by how much the stock is trading for.

Answer 4

It depends..