The figure shows a rectangular plate labeled axial member fixed to a gusset plate by means of a pin. The gusset plate is anchored to a column on the left. The axial load, P, on the plate is 
		directed to the right.

A hole must be created in the axial member for the pin. The hole reduces the amount of material available to resist the axial load P. The area removed by the hole is equal to product of the pin diameter and the axial member thickness. The remaining area is called the net area.