Companies frequently buy the stock of other companies. Sometimes it's just an investment; other times it reflects the desire to exert influence over the investee. The dividing line between the two ...

When one company has an interest in another company it has equity in that company. Under certain circumstances, the appropriate way for the company to account for that investment on its own books is ...

The cost and equity methods of accounting are used by companies to account for investments they make in other companies. In general, the cost method is used when the investment doesn't result in a ...

David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Stockholders' equity is the value of assets a company has remaining after eliminating all its liabilities. Companies with positive trending shareholder equity tend to be in good fiscal health. Those ...