Equity Withdrawal

Definition: Equity Withdrawal is the process where a shareholder reduces their ownership stake in a company by selling or redeeming their shares. This action results in a decrease in the total shareholder equity of the company, as the shareholder's capital is effectively returned.
A shareholder can sell their shares to another individual or entity, effectively transferring their ownership and reducing their equity in the company.
A company may also choose to redeem a shareholder's shares, meaning they buy back the shares from the shareholder, thus reducing the number of outstanding shares and the total equity.

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