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TeachMeFinance.com - explain Common equity (book value) Common equity (book value) The retained earnings and common stock earnings plus the balances in common equity reserves and all other common stock accounts. This also includes the capital surplus, the paid-in surplus, the premium on common stocks, except those balances specifically related to preferred or preference stocks; less any common stocks held in the treasury. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.