I owe the bank 750,000.

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

So my liabilities I owe the bank 750,000.

I won't go into that too much, but I think you get the idea what I mean, part lender.

So where does this lead?

Let me just make everything clear.

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

I still owe 750,000 to bank.

Minus 1.075 that was the max that I could borrow

This was equity.

So liabilities. Liabilities.

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

I think I had called it Loan C.

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

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

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

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

And so liabilities plus equity is equal to assets.

It had 5 million of debt.

To pay off his debt,

My assets are 250,000.

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

liabilities as well.

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

I owe nothing to anyone.

So over here you had another liability.

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

Now what's different about them is what happens on the other side of the balance sheet and this is what I meant by them having different capital structures so let me draw the liability's side for both of these characters so let's do liabilities

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

I could give a 500 gold piece bank note out.

The waste water that leaks out is water that already now goes into that coastal environment, and the algae that leak out are biodegradable, and because they're living in waste water, they're fresh water algae, which means they can't

Let's think about its liabilities.

What are my liabilities?

All its buildings and its employees and its brand.

So going back to our balance sheet, we had a 10 million asset, we had 5 million of debt.

Because essentially, or you can view it this way, if you subtract liabilities from both sides, assets minus

Well, nothing.

So a security in the equity world is a stock.

So we now know that there are two ways that a company can raise capital.

But all in all, they have 30 million of assets.

liabilities plus equity is equal to assets.

I had 100 of cash, no accounts receiveables,

But this is debt. 80 million of debt right here.

So that's 10 million of deposits.

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