NET WORTH Meaning and
Definition
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Net worth is a financial metric that represents the total value of a person, company, or entity's assets minus their liabilities. It is a measure typically used to assess an individual's or a business's financial standing and wealth. Net worth provides an indication of the value of all possessions and financial resources owned by a subject, including cash, investments, real estate, vehicles, and other valuable possessions.
To calculate net worth, one must determine the sum of all assets and then subtract the total liabilities or debts owed. Assets can include properties, savings accounts, stocks, bonds, personal belongings, and other forms of wealth. Liabilities, on the other hand, encompass debts, loans, mortgages, credit card balances, and other financial obligations.
Net worth acts as a gauge of financial health and stability, serving as a snapshot of one's financial condition at a specific moment in time. It can be influenced by factors such as income, expenses, debts, investments, market fluctuations, and economic conditions. Individuals and businesses often track their net worth over time to evaluate their progress towards financial goals, monitor their financial performance, and make informed decisions regarding investments, savings, and debt management.
Overall, net worth provides a comprehensive perspective on a person or entity’s financial worth, reflecting their accumulated wealth and financial position after accounting for all assets and liabilities.
Top Common Misspellings for NET WORTH *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for NET WORTH
- networt
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- net qorth
- net aorth
Etymology of NET WORTH
The word "net worth" is a compound noun derived from two separate terms, "net" and "worth". The term "net" originated from the Old English word "nett", meaning "remaining after deductions or expenses", which can be traced back to the Proto-Germanic word "natjan" (to seize or have in hand).
The word "worth" comes from the Old English word "weorþ", which means "value" or "price" and can be linked to the Proto-Germanic root "werđaz". From there, it evolved into the Middle English word "worth", maintaining the same meaning.
Therefore, the etymology of "net worth" as a whole simply refers to the remaining value or assets possessed by an individual or entity after accounting for deductions, debts, and liabilities.
