retained earnings

retained earnings definition - finance
Corporate earnings that are not paid out as dividends. Retained earnings are accounted for on a companyÂ’s balance sheet as ownersÂ’ equity, and are distinguished from paid-in capital, which is the difference between the par value of equity and the amount of funds raised from a stock issue. Also called undistributed profits or surplus.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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