And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

We're willing to say that the market value of your equity is 210,000.

And why don't you like them as much?

And there's a whole methodology to how one would account for that.

They're the share of owner's equity and not of the asset also gives you a good sense of what market cap is

There's no market.

What's going on in Nigeria? A couple of things.

The real estate market's booming in Rio.

And we'll introduce debt later, because that's another variable that a lot of people don't think about when they

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

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

You probably heard of this concept.

I think that's what I wanted a write here, market value of equity.

So its assets.

So let's call that market equity.

liabilities plus equity.

That assets, A for assets, is equal to

So that's a very handsome return.

And the federal bank will get these notes into circulation by going out into the market and buying assets.

Well I would have 50,000 left over.

Here, I deliberately chose this because it is a man buying a vegetable.

We can do this.

Malibu Equity and Investments.

But the market value or assets is essentially, what is the market saying the assets are worth?

And then, that gets you to the market value the equity.

I don't want to draw this box.

And rich, eh?

I'll do that in yellow.

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

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.

House 1, house 2, house 3, house 4, and house 5.

So here investors are valuing this company at 1 times a million shares.

And you take out the liabilities, this is what the assets are worth according to the accountants.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Unfortunately, many of us in this room are supporters of capitalist policies and market forces.

Oh. Ha, ha. Yeah, that's an example of better judgment.

So the first one I'd like to parce is the idea of market value.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.

Well, that means the ratio of the assets to the equity is 2 1.

He made a killing by investing in the stock market.

Xigi is a new community site that's built by the community,

So 26 minus 23 is equal to 3.