00:01
So here we're talking about the difference between private and public fund, right? and public, of course, means that government is involved, right? that government is raising the money or that government is collecting the money as opposed to private, which means basically not government, right? the government is the representative of the public interest.
00:21
So here, let's start categorizing these.
00:23
Municipal bonds are public, right? these are money raised by the government.
00:28
The government is issuing bonds to collect money to spend on things.
00:32
That is public finance and municipal bonds generally are tax advantaged, which makes them a very common source of public financing.
00:41
But retained earnings are private, right? retained earnings are just profits that are not distributed to shareholders.
00:49
Those are private company earnings that are making money and being used to fund investment, right? so those are private companies, as opposed to see sales.
00:58
Taxes, which are again public, right? you see taxes, you know it's public.
01:04
The government can tax, but private companies cannot tax.
01:10
Car license fees, license fees, that word always throws me, are also public, right? again, car license fees are something that is imposed by government, not by a company.
01:23
You have to pay automobile license fees because the government says so.
01:29
Right.
01:30
Going to a bank is a private thing, right? bank loans, you go to a private company, which is a bank, and you convince them to lend you money.
01:37
There's no coercion involved.
01:39
This is private...