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Stockholder investments increase equity via net income.
Stockholder Investments
Funds or assets that shareholders provide to a corporation in exchange for ownership interest.
Equity
Equity represents the ownership value held in an asset or a business by its shareholders or owners, calculated as the difference between the value of the assets and the value of the liabilities.
Net Income
The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.
- Gain insight into how a company's equity is affected by activities related to its stock.
- Understand the concepts of net income, net loss, and their impact on equity.
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Learning Objectives
- Gain insight into how a company's equity is affected by activities related to its stock.
- Understand the concepts of net income, net loss, and their impact on equity.
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