Decoding Stockholders' Equity: Who Owns What and Why It Matters

Who really owns the company—and how does that show up in the financials?In this episode of COCOMO CPA, we break down the components of stockholders' equity—common stock, preferred stock, retained earnings, and additional paid-in capital—and explain how ownership structure affects control, dividends, and reporting.Whether you're prepping for the FAR exam or reviewing a 10-K, understanding equity is essential to interpreting financial health and investor power.