Bottles chemicals everywhere. Balance, test tubes in stands, and a smell of evening primrose.

The capital for this plan was prepared.

liabilities plus equity.

It should start to make a little bit of intuitive sense

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

Let's figure it out. It's equity.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

And in the case of Jason's business

It's good for you.

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

I'll do that in yellow.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

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

You can pass it around.

That's 11,000.

Well, I have 250,000 left over.

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

Hong Kong, Singapore and Sidney.

Wait! But we spent that 60,000, especially in year 1

In a world without leverage so if I didn't have all this

So this is just another visual representation that

less capital intensive that there's less money that's required

It doesn't sound like we borrowed money or anything.

That just comes out of the definition of what equity is.

I'll draw it a little bit bigger.

These are their assets, just to get all the labelling right.

that assets are equal to liability plus equity.

Remember liabilities plus equities are equal to assets.

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

How much equity do they have?

But let's say its assets are worth 1 million.

So you'd have 20 million left.

Capitalist country.

So my initial equity is 300 gold pieces.

because they're both on the right hand side.

If you take an MBA, they'll write it down, and it looks

And we have 23 billion in liabilities.

So immediately, they have 20,000 equity and an 80,000 loan.

So he owns it outright so all of the 100,000 of asset value is actually his equity.

So 5 million of liabilities.

These are assets.

What happens in a closed end fund is that all of the investors are essentially

Now in order to do this and this brings this group we have to rethink the notion of capital.