which are based on par value rather than market price. Shareholder equity is not directly related to a company'smarket capitalization. The latter is based on the current price of a stock, while paid-in capital is the sum of the equity ...
In the corporate world, net worth is also sometimes referred to as a business' "book value" and is effectively the same as shareholderequity. It is used to determine the value of an entity, be it an individual, a company, or an organization. It represents the difference between the total...