Net Worth

The total value of all assets minus all liabilities, calculated for an individual, company, or other entity. For individual investors, net worth is the most comprehensive snapshot of financial health, encompassing investment accounts, real estate, cash, retirement funds, and debts. In securities regulation, net worth thresholds determine eligibility for certain investment opportunities -- accredited investor status in the U.S. requires a net worth exceeding $1 million (excluding the primary residence) or annual income above $200,000.