The bank is going to be able to fulfill its promise.

I'll do that in yellow.

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

So the total assets were 5 billion in assets.

To make money it is necessary to have money, capital.

So my initial equity is 300 gold pieces.

The least important form of capital, in this project, is financial capital money.

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

No industry. No capital. Money is worthless.

I have 300 gold pieces of reserves

This is the angel investor, and this is all of us down here, and all of this is equity.

That and money.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

The capital for this plan was prepared.

I guess you could say non cash assets, right?

Well, that's true if it's a depressing world in which this pie cannot be made any bigger.

Supporting financially

I met him on the train.

Where am I taking this money out of?

The company has a capital of 500,000 pounds.

And I'm actually going to initially capitalize this bank with 200 gold pieces.

But I have an accounts receivable of 400, so my total assets now are 300 of assets, remember, accounts receivables aren't assets, because someone owes me something, someone owes me cash in the future.

But there was an underlying support.

let's have corporations take over, and that's not true.

We've got our funding.

The company was started with 100,000 in capital.

Now, who are they accountable to?

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

But our total assets, or the market's perception of the total assets of the company, are essentially what it's willing to pay for the equity plus the liabilities, so the market is saying that Ben's assets, the assets in that company are worth 220,000.

The money amounts to almost two thousands dollars.

And we have these 4 billion of CDOs.

Her business was started with capital of 2000.

Her business was started with capital of 2,000.

So in our example right now, what is our equity?

And this is my equity that I start off with.

Let's say my building is worth 100 gold pieces and then I capitalize it with another 200 gold pieces.

And that seems like a pretty reasonable proposition.

And in between, there should be a public agency, the Independent Service Authority, which channels public money, and especially donor money, to the retail providers.

Hey.

Another way to think about it is, if the market is paying 12 million per share, what's the market cap of the company?

I shouldn't have crossed it out, let me write it again. 4 billion, the 2.5 is what the market was saying.

I raise funds.

Or any design? No.

What do they tell you?