It should start to make a little bit of intuitive sense

This is their current assets, and let's say that is is their liabilities over here, so liabilities, and then this is their equity, although the federal reserve's equity is a little bit strange, it's not like traditional equity, that they get all the excess profits and all of that, all the excess profits actually go to the US government.

The man connected two wires.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

Join with segment

Join subpaths

Disengage.

But let's say its assets are worth 1 million.

By this reasoning, we can see that it would take at least seven edges needed to make B have a single reachable component consisting of all the nodes.

I'll do that in yellow.

Let's figure it out. It's equity.

One, what shares are share of

When the linkage parts, it's...

You start by teaching angles an acute angle, a right angle, an obtuse angle, a straight angle.

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

I use 100 gold pieces.

In return on equity, the numerator is the net income that we got, so it's 350,000.

It's good for you.

liabilities plus equity.

So he owns it outright so all of the 100,000 of asset value is actually his equity.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

less capital intensive that there's less money that's required

It doesn't sound like we borrowed money or anything.

You can pass it around.

So let me do that in a vibrant color.

That's 11,000.

Let me do equity in a different color.

It's all his equity.

So now it's getting interesting.

Well, I have 250,000 left over.

That just comes out of the definition of what equity is.

I'll draw it a little bit bigger.

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

These are their assets, just to get all the labelling right.

Remember liabilities plus equities are equal to assets.

But you didn't have to cut the path.

No, I couldn't I really couldn't.

Capitalist country.

Now, that was the purchase price of the house.

These are assets.

Let's assume that they're not for now.

Mmhm. It's a real estate investment.