1. What are the components of shareholders' equity?

1. Paid-in capital: Invested capital consisting primarily of amounts invested by shareholders when they purchase shares of stock from the corporation.

   • Includes common stock, preferred stock, additional-paid-in capital.

2. Retained earnings: Amounts earned by the corporation on behalf of its shareholders and not (yet) distributed to them as dividends.

3. Treasury stock: Shares of a company's own stock repurchased and not retired. 

4. Accumnlated other comprehensive income (AOCI): A component of shareholders' equity that reports the accumulated amount of other comprehensive income items in the current and prior periods.