So a security in the equity world is a stock.

So given that 2 on 100,000 debt.

So liabilities. Liabilities.

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

But it's really a measure of the same thing.

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

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

Let's think about its liabilities.

I owe the bank 750,000.

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

This was equity.

I owe these people that money is 700 and my equity is 300.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

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

Maybe the same thing for other types of debt.

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.

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

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

I think I had called it Loan C.

I had 100 of cash, no accounts receiveables,

So the only liability is this 5,000.

Let me just make everything clear.

These are the assets that our five buddies have together.

So over here you had another liability.

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

My assets are 250,000.

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

These are my assets.

It should start to make a little bit of intuitive sense

So right now, the short seller, he has assets and

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

YoOOuse shell corporations to hide your debt.

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?

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

And this is an annual income statement.

What I'm squaring off in blue, that's the

What were we supposed to do?

So where does this lead?