Tia!

This is Tia.

Her name's Tia Hayden.

That's Tia's address right there. Pull it up.

And there's Tia right beside him.

So you can see the snapshot at the beginning of the month 100 in equity snapshot at the end of the month 300 in equity.

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

Tia, ella es Maricruz.

Don't get all excited, Teardrop.

I pick the i'th data item, and I count how often does this occur in the entire list.

And some of them go to me and then the rest of them go to buddy one, buddy two, buddy three, and buddy four.

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

Company's emailing Tia's credit card history.

That assets, A for assets, is equal to

If I make an incision here to try and remove one of the digits from his face...

But we'll do a whole playlist on that.

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

Well, they lost, by entering into this transaction, essentially, they lost whatever equity they originally had in their house.

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

I have a 1 million house on my balance sheet.

Fair enough.

You're not really a...

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

So that's a liability.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

CA

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

It should start to make a little bit of intuitive sense

We're just exchanging shares.

On the equity side of the equation we just have four million shares.

I'll do that in yellow.

One, what shares are share of

liabilities plus equity.

Nothing like the resources of a CERN or a DARPA or an IBM or a Dupont.

I use 100 gold pieces.

And then the equity is, essentially we would look at this formula.

let me just draw you a spectrum here.

And this is another important thing to think about.

So this is just another visual representation that

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

Good health is his capital.

liabilities.

So now it's getting interesting.

Its velocity will not change, neither its speed nor its direction, will change.

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