Shareholder Equity


4 Answer(s)


The initial shareholder equity will decrease to the extent of no. of shares they sold.

I answered the same in quiz in "Building three state financial model", but it showed incorrect.

Shareholder equity will stay the same since the share have only changed ownership from your name to another investors name.

The shares are still available.

Shareholders equity number will increase incase you issue additional shares.

Thank you very much Mr. Mathews.