So where does this lead?

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

I still owe 750,000 to bank.

This was equity.

I owe the bank 750,000.

It had 5 million of debt.

They're giving it to me for safekeeping.

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

So my liabilities I owe the bank 750,000.

Minus 1.075 that was the max that I could borrow

So once again, if this is a balance sheet, this is the assets, here are your liabilities.

All its buildings and its employees and its brand.

So liabilities. Liabilities.

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

It makes sense to pay off your credit card balance every month.

Let me just make everything clear.

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

Now you could also have a yield curve for other types of debt.

This business is a good business.

To pay off his debt,

So right now, the short seller, he has assets and

liabilities as well.

What are my liabilities?

I think I had called it Loan C.

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

What I'm squaring off in blue, that's the

Let's think about its liabilities.

I had some debt.

Let's just say it's all of it.

And then what he does is, he takes this share of IBM and then gives it to the brokerage to pay off his liability.

So they all deposit their 1,000 gold pieces into my bank.

liabilities plus equity is equal to assets.

I just care about printing money,

I had 100 of cash, no accounts receiveables,

My assets are 250,000.

We didn't pay down any of the principal of the debt.

And let's say that's all of their liabilities.

So this is just another visual representation that

And just so you don't get confused, there's always a

I owe nothing to anyone.

So now I have this liability.

So over here you had another liability.

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

I could give a 500 gold piece bank note out.

And then that's an asset sitting in my vault.