What is the difference between capital and net worth?
Capital is money. Net worth is what you (or a company) is worth: what you own minus what you owe.
For example, your friend asks you, "how much money do you have?" One answer would be to tell him how much is in your bank account (the cash you have). That is your capital holdings.
Another answer--although your friend would think you a little odd--would be to sum up everything you own, including the cash in your bank account, and subtract all of your debts. Suppose the only thing you own in this world is a car worth $10,000 and you have a loan on it for $6,000. Your net worth would be $4,000 plus whatever cash you had.
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