What I could do is maybe 100 of it,

What is my assets minus my liability?

I owe the bank 750,000.

Loan to Entrepreneur D.

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

I think I had called it Loan C.

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

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

Minus 1.075 that was the max that I could borrow

I'll use an A colon.

And this is another important thing to think about.

So liabilities. Liabilities.

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

All its buildings and its employees and its brand.

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

So my liabilities I owe the bank 750,000.

20 plus 80 plus 5, so it's 105,000. 105,000 total liabilities.

This business is a good business.

Our total debts amount to ten thousand dollars.

My assets are 250,000.

These are the assets that our five buddies have together.

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.

Because assets are equal to liabilites, (these are the liabilities right here) plus equity.

Let me just make everything clear.

So over here you had another liability.

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

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

So in this case, our assets are 250,000.

But, unfortunately, let's say that I had

Let's think about its liabilities.

So where does this lead?

What are my liabilities?

I still owe 750,000 to bank.

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

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

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.

The hiding

I now have cash of 1 million. What are my liabilities?

His debts amount to more than he can pay.

I had 100 of cash, no accounts receiveables,