Net worth is a measure of the value of a person or company’s assets and liabilities. To calculate net worth, one must first determine the total value of all assets. In the case of stocks, this includes the current market value of all shares owned.
Calculating net worth is important for many reasons. It can help individuals track their financial progress over time, make sound investment decisions, and secure loans and other forms of financing. Historically, net worth has been used as a measure of financial security and overall well-being.