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Effective Net Worth |
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Effective net worth Net worth plus subordinated debt. Effective Net Worth The net worth of an individual or company plus what he/she/it owes in junior debt. Because, in the event of liquidation, junior debt is paid only after all senior debt is paid, the individual or company has a great deal more flexibility in repayment. This flexibility has the effect of adding to the individual or company's net worth. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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