Effective net worth(redirected from Effective Net Worths)
Effective net worth
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved