Basic Finance Edit

All the business money is called the Assets. The Assets are splits into two groups called the Liabilities, and the Equity. The Liabilities are Bonds or Loans. Assets are not always cash, it could be equipment, or vehicles. Equity is the cash the owners make. When you by a stock, or share, you are giving a Liability for Equity. The Equity is also the cash that the owners get. If there was a basic finance math problem, it would look like this, Equity + Liability = Assets. Finance for houses, and buildings, is called Mortgage. Mortgage is the Loans on houses, and buildings. If you buy a house or building, you are giving Mortgage for Equity for the house or building. The Assets in Mortgage are called Real Estate or Real Assets.


Ad blocker interference detected!

Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.