Shareholders’ equity (or stockholder's equity), also referred to as book value or net worth, represents the total assets minus total liabilities of a company. Capitalization, on the other hand, refers to the amount of money required by a business enterprise. Capital can be obtained through issuing equity and preference shares, Debentures as well as Retained Earnings. The total amount of capital is divided into stockholder's equity, preference capital and Debentures.