I'm worth 11,000.

For example, government treasuries is a liquid security or a liquid asset,

So once again, I'm stuck holding this non liquid asset.

Liquid means it's very easy to buy and sell those securities in large quantities.

And you might not even be able to find anyone to buy it a year later.

And then you can imagine now Bank C is worried because now

So this is kind of a frozen asset.

Illiquidity is a different situation.

Even though it might be worth 20 million, a year later you might not there are only so many people who can afford a 20 million house.

And liquidity.

Mmhm. It's a real estate investment.

It's listed as a current asset on this balance sheet but the invoice was never presented to accounts receivable, so....

Do Low Interest Rates Ensure High Asset Prices?

You might be curious about hey, what's all this current asset business?

levels of debt, will probably lose some money.

That's its asset it has.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

And let's say for whatever reason, all of these other

You're trading in the secondary market you're not dealing with the actual corporation so that's where the investor get's their liquidity and when we say liquidity it allows them to convert it into cash because they can trade it

That's insolvency.

So its assets.

I'll do that in yellow.

Beyond drag, lift and stretch there are many other properties we could simulate.

That assets, A for assets, is equal to

She miscarried.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

Malibu Equity and Investments.

And frankly, you might be uncertain about

It's hypoallergenic.

And what I wrote here is, it has 4 billion of liabilities.

You'd have to give up 93 of your net worth.

I don't want to draw this box.

And rich, eh?

And if you look at the species level, you saw about fish.

And that is opposed illiquidity.

Remember liabilities plus equities are equal to assets.

GM old goes to 0.

And I can sell them.

These are my assets, and these are my liabilities.

An asset is something that's going to give you some future economic benefit.

And he described the diversity within crops all the different kinds of wheat and rice and such as a genetic resource.

Jim has a lot of our nest egg invested in this real estate venture.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Price to Earnings, all else equal and that's a big thing all else equal, the lower the Price to Earnings, you're paying less for something.