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stockholder's deficit

Dutch translation: negative stockholders' equity

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)

English term or phrase:	stockholder's deficit
Dutch translation:	negative stockholders' equity
Entered by:	TT&V

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23:58 Apr 16, 2007

English to Dutch translations [PRO]
Bus/Financial - Accounting / tax

English term or phrase: stockholder's deficit

zou negatief eigen vermogen hier een goede vertaling zijn?

TT&V

negative stockholders' equity

Explanation:
When Assets > Liabilities you have a positive Equity or stockholders' equity. When it is not you have a negative stockholders' equity also rarely called stockholders' deficit.

Stockholders' deficit does not entail that stockholders owe money. It just means that the value of the assets of the company will have to rise above its liabilities before the stockholders will reap any value (above zero) from owning the company's stock.