Equity vs. debt | Stocks and bonds | Finance & Capital Markets | Khan Academy

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Debt vs. Equity. Market Capitalization, Asset Value, and Enterprise Value. Created by Sal Khan.

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Finance and capital markets on Khan Academy: This is an old set of videos, but if you put up with Sal’s messy handwriting (it has since improved) and spotty sound, there is a lot to be learned here. In particular, this tutorial walks through starting, financing and taking public a company (and even talks about what happens if it has trouble paying its debts).

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  1. I am 55 years old with very little set aside for retirement at this point. I have always been curious about the stock market and have witnessed some people who played the game right and retired early because they used the stock market. When I ask them, most said that they invested very little to start with, but their portfolio grew. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make decent returns.

  2. I must say that knowing you is my greatest achievement in life, i receive my profit $10,000 successful, all thanks to Mrs Linda may God keep on blessing you.

  3. Videos like this are classic and comprehensive for one’s understanding…I do appreciate your works to the community!

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  5. I recently just started investing in bitcoin when I learnt it was $60000 through the help of Luiz and just an hour ago I got a profit of $9000 into my wallet

  6. The content look/feels so FRESH even though it's 12 years old.
    That's what 'Khan Academy' is!
    Timeless creations to inspire generations after generations.

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  8. Thanks Sal, I am actually doing engineering but somehow I had to learn the infernal course of entrepreneurship in semester 2 and you helped not only in electronics and thermodynamics and chemistry and calculus and differential equations and physics but also in learning these business field related courses
    An apology if I forget to mention any other subject !

  9. Cool Fact: It can take a photon 40,000 years to travel from the core of the sun to the surface, but only 8 minutes to travel the rest of the way to earth

  10. When you say debt. are you talking about total liabilities , or are you saying total debt, total Long-term debt, etc?

  11. Dear Mr Salman, I don't know how to appreciate your wonderful job, I only can say that I wish there were more people like you on the world.

  12. I wonder how is it possible that you can teach every thing and in such a nice way, your are wonderful man.

  13. but what if the companies assets fall drastically in value? So if the $150 million had been used to make a rocket that was now obsolete and only worth $50 million. how would that effect market cap? or say the rocket was worth only $1 million and there is the $3 million debt – surely then the company is bankrupt?

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