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Hello JulesD, and Welcome!

Its been a while since I took Accounting 101, but here goes.... (Any Accountancy types peeking in, please correct me if I get anything here wrong!)

If you look at the Balance Sheet for a company, on one side (generally the left) you will see their Assets, on the other side you'll find their Liabilities. However, since these two numbers will seldom balance without help, and since a Balance Sheet MUST balance, something else is needed. To get the two sides to equal each other Total Liabilities are subtracted from Total Assets and the result termed "Owners' Equity" (basically value of the owners' stake at the time of the report). Equity per share is simply this number devided by shares outstanding.

Regards,

Creighton
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