$200 million ... in his pocket

[unpakwon]

Please make the following in bold clear for me.

Steve sold all but one share of his Apple stock, changing his balance sheet from a net worth of $200 million to $200 million, less taxes, in his pocket.

Is this saying "Steve changed his balance sheet from a net worth of $200 million to $200 million of cash (less taxes) that he can use anytime he wants"? I think I'm not sure of the difference between a net worth of $200 million and $200 million in his pocket. Does "the money in your pocket" mean the disposable income?

Thank you.

 

[Coolfootluke]

I am not a teacher.

Yes.

"Less taxes" refers to capital gains tax. He would not have paid tax on the part of the 200 million dollars that came from an increase in the value of the stock until he sold it, which he now has done.

 

[mykwyner]

This is a case of cash as opposed to assets. If you have a net worth of 200 million dollars, you might own 200 million dollars worth of stock, real estate, art, etc. It could also mean that you have 400 million dollars in assets and 200 million dollars in debts (or any other combination that will yield the same net amount).

If you want to convert your net worth to cash, you sell all of your assets, and pay off your debts. What you have left is still your net worth, but it is now ready cash that you can spend on anything, as opposed to the mathematical formula of assets minus liabilities.

 

[unpakwon]

It's been a big help.

Thank you all.