For example, a company may have shareholder equity of $1 million as of the first quarter and then issue new shares during the second quarter, raising shareholder equity to $1.5 million.

Shareholder equity (SE) is the stock owners’ claim after total liabilities are subtracted from total assets. The number is used as a measure of a company’s financial health.

An example of a stockholders’ equity is if a company has 300 million in assets and 200 million in liabilities, then the total stockholder’s equity is 100 million.

How to Raise Stockholders' Equity. Stockholders' equity is made up of a company's issued common stock, preferred shares, warrants and accumulated profits, known as retained earnings.

The statement of shareholders' equity can be used to calculate the difference between a company's assets and liabilities. S&P 500 +---% | Stock Advisor +---% Join The Motley Fool ...