Equity was assets minus liabilities.

Assets equal liabilities plus equity.

Assets minus liabilities is owners equity.

And so liabilities plus equity is equal to assets.

liabilities plus equity is equal to assets.

So this is all equity and this is all assets.

And my equity would be my assets minus my liabilities.

Because assets are equal to liabilities plus equity.

Assets are always equal to liabilities plus equity.

Or assets minus liabilities is equal to equity.

Or assets minus liabilities is equal to equity.

that assets are equal to liability plus equity.

And then in the future maybe sell their assets and still have positive equity.

And how many assets are we controlling with that 300 gold pieces of equity?

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

like an equation, but it's assets is equal to liabilities plus equity.

Now, I just reduced my assets, but I didn't change my equity.

And then you had the equity, which is essentially the total assets minus the liability.

leverage, if I just had the same amount of assets and equity so in an example like this where my assets are equal to my equity if my assets go down by 50 notice here I have no liability.

leverage, it's assets to equity another one that people often use, often in the investing world, is debt to equity.

And leverage is essentially, how much assets do you control with a certain amount of equity?

Well, if my assets are 500 and my liabilities are 700, then what is my equity?

So 26 billion of assets minus 23 billion of liabilities means that we have 3 billion of equity of shareholders' equity.

Because it has no liabilities, it has no debt, and its assets are equal to its equity.

Well, that means the ratio of the assets to the equity is 2 1.

Because assets are equal to liabilites, (these are the liabilities right here) plus equity.

In this case, the ratio of our assets to equity so we have assets to equity leverage, is what people say in this case, it's 1,000 to 300 or what is it?

If you're controlling 10 of assets and you only have 1 of equity, you have 10 1 leverage.

It tells you just how many assets we're controlling with a certain amount of equity.

So everything we have so the assets are equal to our equity and I'll do that in a brown color so there's no liabilities and we just have equity.

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

So you take all of your assets, minus all of your liabilities, and now I have 300 in equity.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

And that's your equity.

Malibu Equity and Investments.

Because if someone tells you debt to equity, you can figure out the assets to equity, but in this case, the debt to equity ratio before I took any losses it was what?

And the equity's 1 million, because there's no debt, so all of the assets are held by the equity holders.

And this is called the equity, or the owners' equity.

And the equity holders get wiped out, the old equity holders.

You have 3 billion of assets, 4 billion of liabilities, this is actually minus 1 billion of equity.

When you take some of your assets and you get the value of the assets that you think they're worth and you pay off some liabilities, it doesn't change the value of your equity.

And that's called your equity.

And their assets are identical.

And these are its assets.

But our total assets, or the market's perception of the total assets of the company, are essentially what it's willing to pay for the equity plus the liabilities, so the market is saying that Ben's assets, the assets in that company are worth 220,000.