deficit net worth

Deficit Net Worth

A situation in which a person or company has more liabilities than assets. This may happen to a person if, for example, he/she owes more on his/her mortgage than the home is worth. A company may have a deficit net worth after consistently posting operating losses over an extended period of time. It is important to note that a deficit net worth does not necessarily mean that bankruptcy is inevitable, but it may prevent the debtor from receiving new credit necessary to maintain operations. It is also called negative net worth.
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deficit net worth

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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have begun work to provide financial assistance to the five recipients of the failed Chogin credit unions to help the recipients rectify the 13 failed institutions' deficit net worth.
The sell-off is aimed at preventing Daiei from falling into a deficit net worth on a consolidated basis, they said.