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Net worth

Net worth is the net financial position of an individual or company.

Expanded Definition

Net worth is the sum of assets minus all liabilities. For a company, this is also called shareholder's equity or book value.

Because assets and liabilities change regularly (i.e., through investment gain or loss, paying down debt, earning additional revenue), a net worth calculation is useful as a snapshot of a particular moment in the history of an individual or company.

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