Equity was assets minus liabilities.

Assets equal liabilities plus equity.

liabilities plus equity is equal to assets.

Assets minus liabilities is owners equity.

Because assets are equal to liabilities plus equity.

Assets are always equal to liabilities plus equity.

Or assets minus liabilities is equal to equity.

Or assets minus liabilities is equal to equity.

that assets are equal to liability plus equity.

And so liabilities plus equity is equal to assets.

like an equation, but it's assets is equal to liabilities plus equity.

So this is all equity and this is all assets.

And my equity would be my assets minus my liabilities.

leverage, it's assets to equity another one that people often use, often in the investing world, is debt to equity.

In this case, the ratio of our assets to equity so we have assets to equity leverage, is what people say in this case, it's 1,000 to 300 or what is it?

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

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

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

Now, I just reduced my assets, but I didn't change my equity.

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

leverage, if I just had the same amount of assets and equity so in an example like this where my assets are equal to my equity if my assets go down by 50 notice here I have no liability.

Because if someone tells you debt to equity, you can figure out the assets to equity, but in this case, the debt to equity ratio before I took any losses it was what?

So 26 billion of assets minus 23 billion of liabilities means that we have 3 billion of equity of shareholders' equity.

And how many assets are we controlling with that 300 gold pieces of equity?

And then in the future maybe sell their assets and still have positive equity.

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

Because it has no liabilities, it has no debt, and its assets are equal to its equity.

It tells you just how many assets we're controlling with a certain amount of equity.

And then you had the equity, which is essentially the total assets minus the liability.

That assets, A for assets, is equal to

And leverage is essentially, how much assets do you control with a certain amount of equity?

Well, if my assets are 500 and my liabilities are 700, then what is my equity?

So everything we have so the assets are equal to our equity and I'll do that in a brown color so there's no liabilities and we just have equity.

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.

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)

You have 3 billion of assets, 4 billion of liabilities, this is actually minus 1 billion of equity.

If you're controlling 10 of assets and you only have 1 of equity, you have 10 1 leverage.

liabilities is equal to equity.

So you take all of your assets, minus all of your liabilities, and now I have 300 in equity.

So equity.

Equity tranche.

That's equity.

So assets.

Total assets.

And so you can see very simply that assets I'll write this down, you're getting a little bit of a introduction to accounting right here but assets are going to always be equal to liabilities plus equity.