What is common ordinary equity?
Common ordinary equity (CEQ) describes the common shareholders' interest in a company. Common shareholders are company owners who receive any profits or losses in the business after interest and preferred stockholder dividends are paid.
Where have you heard about common ordinary equity?
Common Ordinary Equity is typically used to calculate shareholders' equity total (SEQ). You may have come across these terms when investigating a company’s financial health.
What you need to know about common ordinary equity.
Common ordinary equity requires a straightforward calculation.
Add together:
- Common/Ordinary Stock (Capital) (CSTK)
- Capital Surplus/Share Premium Reserve (CAPS)
- Retained Earnings (RE)
Then subtract:
- Treasury Stock Total (All Capital) (TSTK)
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