Owner’s equity represents the residual curiosity in the belongings of a business after deducting liabilities. Examples include common inventory issued by a company, which displays preliminary investments made by shareholders, and retained earnings, which are earnings that have been reinvested within the business rather than distributed as dividends. Additional examples are additional paid-in capital, which arises when shares are sold for more than their par value, and treasury stock, which represents the cost of shares that an organization has repurchased from shareholders. Overall, owner’s fairness indicates the net value of the enterprise from the owner’s perspective.