They pay 1 million.

It's why the purchase price is so high.

So of course, what matters in a home?

So, and maybe in particular the people who were going to buy this car at any given price point

The price of admission.

So a security in the equity world is a stock.

If you expect the future price to go up and the good or the product in question is something that you can store, well, depending on how much you expected to go up, you're probably more likely to buy now buy before the price goes up.

So it buys, it buys debt.

And it's essentially, what is the market saying the equity is worth?

So liabilities. Liabilities.

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

So at 2 more people would wanna buy 'cause things gonna go up.

Now I'm making 300,000 a year. This seems like a good idea.

And we really like it.

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

Let's think about its liabilities.

Look, Pat, First Rate got that contract fair and square.

I owe the bank 750,000.

So this banker thinks they have a great deal.

Maybe the same thing for other types of debt.

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

PRlNCE Romeo slew him he slew Mercutio

This was equity.

Then auctions like eBay are another example of dynamic pricing.

Let me draw that.

Finance, you type in the ticker symbol and you get the price for that day.

longer, so things that are maybe going to maybe 10 year treasury bonds, or further out than even that.

It's what the market is willing to give for it.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

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

It does this in a couple of ways chasing productivity, which drives down prices and encourages us to buy more stuff.

Well all of our earnings, since our debt stayed the same.

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

And the way this affects the aggregate demand curve, the Federal Reserve doesn't just print money and go out and start buying things with that money, well it does buy things, but it doesn't go out and buy goods and services.

Price

Minus 1.075 that was the max that I could borrow

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

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

On the other hand, if you bid down here, and if c snuck in in between what your bid is and what the valuation is, then you've lost the auction, and you get a zero, but you should have won or it would have been worth your while to win because the price still would have been a bargain to you.

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)

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?