| 释义 |
Effective net worth Effective net worthNet worth plus subordinated debt.Effective Net WorthThe 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. |