Negative shareholders equity refers to the negative balance of the shareholders equity of the company which arises when the total liabilities of the company are more than value of its total assets during a particular point of time and the reasons for such negative balance includes accumulated losses large dividend payments large borrowing for covering accumulated losses etc. A negative balance in shareholders equity also called stockholders equity means that liabilities exceed assets and can be caused by a few reasons. Get 27 financial modeling templates in swipe file.
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