Net Worth
Net worth represents the amount by which assets exceed liabilities. For a corporation, net worth is also known as stockholders' equity or net assets. For an individual, net worth is the total value of all possessions, such as a house, stocks, bonds, other securities; minus all outstanding debts, such as mortgage, credit cards and other loans. In order to qualify for certain high risk investments, brokerage firms require that an individual's net worth must be at or above a certain dollar amount.