What Is Net Worth
Net worth is the value of everything you own minus everything you owe. It is a common measure of personal financial health and is widely used in accounting and financial planning.
What Is Net Capital
Net capital usually refers to the capital a business or investment firm has after subtracting liabilities and required reserves. It is often used in finance and regulation to show the amount of capital available for operations or risk coverage.
Are Net Capital and Net Worth the Same
Net capital and net worth are not the same, though they are related. Net worth is a personal or household measure, while net capital is typically a business or regulatory term. For more on the difference, see Investopedia.
