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What are retained earnings? Why are they important?
Retained earnings denote the sum of all the earnings obtainable to common stockholders of a business throughout its whole history, minus the sum of all the common stock dividends that it has ever paid. Those earnings which were not paid out were, through definition, retained.
Retained earnings are significant because they represent amounts reinvested in a company on behalf of the company's owners in place of being paid out in the form of dividends.
Global Economy: The size of the world stock market grew steadily in the 1970s and 1980s and crossed the $12 trillion figure in 1993. The share of the US market decreased tremen
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