And so my initial equity investment went from 250,000 to 750,000.

You really are making an investment in a company.

The company is open for equity participation by anybody.

And let me draw the equity of the company.

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

So the equity holders are actually the owners of the company.

The people who lent this company money made bad decisions and the equity holders of this company made bad decisions.

Investment

In this case, you're saying that the equity in this company is worth 189,000.

And also, a lot of the equity holders are the management of the company.

And equity is essentially what the owners of the company have the rights to.

And the equity is really, the people who own the company. what is their stake?

And in this case, if it's a publicly traded company, what is its shareholders' equity?

If you own a share of the company, you own a share of this equity.

Investment income.

The government is essentially writing a 2 billion check to the equity holders of this company.

And all it is, is what is market valuing the equity part of Ben's company worth

I had a 1 million investment, one time investment.

Because the equity holders, they used to have 100 of the company with their 500 million shares.

So equity.

Equity tranche.

That's equity.

This isn't investment.

So you can kind of view the debtor as the equity holders and the management of the company.

But the market cap is saying what the equity of the company is worth in the market's mind.

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)

That's my equity.

liabilities plus equity.

This was equity.

left for equity.

liabilities plus equity.

What's my equity?

That's my equity.

liabilities plus equity.

That's my equity.

And this is called the equity, or the owners' equity.

And the market cap of the company is really what's the market's guess of what the shareholders' equity is?

Or think of investment.

Credit card, investment account?

isn't an unwise investment.

And the equity holders get wiped out, the old equity holders.

So you might have been part of the equity holder, and you have to sell some of the equity, or sell some shares in your company for someone else to give money.

Company x, let's say they have two million shares, and let's say that the equity is really worth 20 million.

Sometimes called stockholders' equity.

It's all his equity.