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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Retained Earnings  

Definition 1.

The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. Calculated by adding net income to (or subtracting any net losses from) beginning retained earnings and subtracting any dividends paid to shareholders.
 
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