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)

But it's really a measure of the same thing.

I owe these people that money is 700 and my equity is 300.

So just to understand what he's talking about, the central bank, it has liabilities and assets,

And he owes this is his asset, and his liabilities is he owes one share of IBM to the broker.

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

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

Because a stock price goes unbelievably high. What happens suppose stock goes 800 dollars, suppose 8000 dollars

He essentially borrows a share of IBM.

Most of it deposited over the last year.

And then we have the debt, the debt of the company, or the

Let's think about its liabilities.

Our equity is equal to 300 gold pieces.

I owe the bank 750,000.

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

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

This was equity.

He's a stockbroker.

SCOTT Inc.'s stocks are blue chip stocks.

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?

So notice, I now have negative equity, right?

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

Most times the liabilities are pretty easy to get a handle on.

It is a customary contraction like our

'Company.' It is a customary contraction like our

It's actually horrible.

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

goodness.

And just to contrast this with bonds, because they are often used in the same phrasing, oh I'm going to go buy some stocks or bonds, or I deal with stocks and bonds.

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

These are my assets, and these are my liabilities.

Stockbroker.

Stockbroker?

And all of that's great, and it's fine.

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

This is the equity...

So we could say, well, a new figure comes out ... let's see African debt.

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.