Equity: n. tangible value
Money alone does not have tangible value unless it is in an escrow account subject to mutually agreed upon circumstances. Derivatives and other fictitious financial documents are not backed up with tangible assets so they are not tangible assets and have no tangible value or equity. Insurance against risk is a promise of money and if the money runs out due to insolvency or bankruptcy then the insurance is a bogus or fictitious promise and not backed by tangible assets.
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