### Question
How does the law define equity capital?


### Answer
Under *5 U.S.C. § 8438*, **equity capital** is defined as:

> common and preferred stock, surplus, undivided profits, contingency reserves, and other capital reserves

#### Citation:
  - *5 U.S.C. § 8438*
  - Heading: **PART III-EMPLOYEES > Subpart G-Insurance and Annuities > CHAPTER 84-FEDERAL EMPLOYEES&#8217; RETIREMENT SYSTEM > SUBCHAPTER III-THRIFT SAVINGS PLAN**

