Two's complement

In two’s complement, the MSB holds a negative value.

$-8$	$4$	$2$	$1$
$0$	$1$	$0$	$1$	$5_{10}$
$1$	$1$	$0$	$1$	$-3_{10}$

Advantages

• No bits with special meanings, $\therefore$ simple circuits.
• A single representation of zero.