LeoGlossary: Wealth

6 mo (edited)
LeoFinance
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Measures the of all assets owned by an individual, company, or country.

Net worth is another term that is associated with wealth, which is determined by taking the market value of all physical and intangible assets and subtracting all debts. This term is most commonly applied to individuals as opposed to businesses.

From this perspective, wealth is stock whereas income is flow.

Another way of looking at it is the abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions. This deals with the term in contrast to where others might align. Here is where the "wealthy" are defined.

The wealth of a country is often considered to be the economic output. This is a mistake many countries make when trying to create more of their currency. Without the businesses to put the money to use, the result is usually inflation.

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