Shareholder's equity
It is the remaining chunk of assets
given to shareholders when all liabilities have been paid. Shareholders may
rank themselves on the order to which the remaining assets would be distributed
depending on the class of stock they posses that may have some degree of rights
than others. After all debts from creditors are settled, stockholders are the
next in line to take a claim on a business' assets. If liabilities are greater
than assets at the time of liquidation, creditors might eat up all assets and
leave nothing for shareholders.