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Net worth

Net worth is everything you own minus everything you owe.

For an investor: cash plus the market value of investments, minus loans such as margin debt.

Formula

Net worth = assets − liabilities

Related terms

  • Portfolio: A portfolio is the full set of investments a person or fund owns, such as stocks, funds, bonds and cash.
  • Margin: Buying on margin means borrowing money from your broker to buy more stock than your cash alone allows, using your investments as collateral.

Practise with $10,000 in play money

Free. No real money involved.

Journey Shares

For learning only. This isn't financial advice.