Shareholders' equity consists of paid-in capital and retained earnings.

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Shareholders' equity is the residual interest in the assets of an entity after deducting all liabilities. It is made up of two components: paid-in capital and retained earnings. Paid-in capital is the amount of capital that is contributed by shareholders in exchange for ownership shares, while retained earnings are the portion of a company's profits that are kept by the company instead of being distributed as dividends to shareholders.

Shareholders' Equity Consists of Paid-In Capital and Retained Earnings