The amount of ownersÂ’ capital of a corporation. The stockholdersÂ’ equity section is located on a companyÂ’s balance sheet. It has two parts: retained earnings, which come from net income, and contributed or paid-in capital. StockholdersÂ’ equity is typically the name of the account for public corporations; a sole proprietorship likely uses the term ownerÂ’s equity; and for a partnership, partnersÂ’ equity is used.