Illiquidity is a different situation.

No matter how bad it was economically, he always got himself paid.

Mmhm. It's a real estate investment.

I'm worth 11,000.

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

I believe we should have the right to choose where we live.

Yes, put that aside.

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

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

Is floating

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

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

And liquidity.

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

It should start to make a little bit of intuitive sense

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

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

Consider this.

Or some kind of fluid shift.

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

liabilities plus equity.

But, to get there, the first thing to understand is just the capital structure and how capital markets work in general.

Maybe it's the porn tape. He doesn't have a porn tape.

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

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

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.

So this is kind of a frozen asset.

As we say in America, bottoms up.

I've been a huge fan of enterprise and entrepreneurship since 1993.

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

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.

It describes it right over here the change in equity, sometime the change in retained earnings, or just change in equity, that is going to be the 200 in net income that the company got over that time period.

Capitalist country.

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

I'll do that in yellow.

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

One, what shares are share of

You love your heroes.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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