And there's a whole methodology to how one would account for that.

And I'll do a bunch of videos on margins in the future.

And the best thing that we as humans have been to be able to come up with is a market.

Let me copy and paste this. soon.

It'll be worth twice as much to us on the black market.

Ben has actually done a good job of saying the market value of his inventory, the market value of his equipment.

And we don't know why the market is saying that.

So the first one I'd like to parce is the idea of market value.

I want to know the size of the market.

And there's only 10 shares. So they're valuing the assets at 500,000. And this is of course the market value of the assets.

Well, what the market is saying in this situation, and this is actually what tends to happen where the market value or in general the market value of a company tends to be higher than the book value, is that the company is saying that this company has some type of intangibles, things that you really can't put a finger on, or touch or feel or hold.

So this is the more formal definition of GDP

But the market value or assets is essentially, what is the market saying the assets are worth?

So what you do is you multiply these numbers to figure out, what is the market value or the market capitalization of the company?

That's great.

That's something like eight percent of the total agricultural output globally.

So the market cap, or what the market perceives the value of this equity is, the market capitalization, is these two numbers.

And you take out the liabilities, this is what the assets are worth according to the accountants.

Choose your frame of reference and the perceived value and therefore the actual value is completely tranformed.

It's just like you would for a Dollar, Euro, or Yen.

You might decide that's a strategy but that's kind of a counter in learning from an MVP.

We're willing to say that the market value of your equity is 210,000.

Peter Brabeck

Now, almost all those mines, by the way, meet underneath the mountain.

Or 0.5 billion.

So that's fine.

Because when the company needs to raise money, that is used as kind of the fair market value of a company's shares.

They're arguing that the few people who transacted did it out of desperation.

ECX, moreover, can become a trading platform for a pan African market in agricultural commodities.

So they're saying essentially that the market cap, and that's equivalent to the market value of the equity, or what the market thinks the equity is worth, that's 1 times 500 million shares.

His idea counts for nothing.

So we have to be careful.

Or another way of viewing it, is that this is the market's guess, or you could call it the market value of the equity.

Rome is a city worth visiting.

Because we know that the book value per share is 5.

Ushahidi, by contrast, is civic value.

We know there's a million shares.

He sells that share and he gets 100 for it.

So, remember, assets are equal to liabilites plus shareholder's equity, so if all of a sudden the market value of the equity, the market capitalization, for Ben's shoe company is 215,000... (That is the equity part right over here)

Our main concern is the life, the welfare, and not only the profit.

So I'll pay 2 per share, which is a little bit of premium over the market value at the time, which was 1.

And this calculation, this multiplication of market price per share times the number of shares this is called the market cap

We're saying that the books of this company are saying this company's worth 8 million.

Now what's our mantra of this day and age I wonder?

And we feel that over the next five years, if Ethiopia can capture even 40 percent, just 40 percent, of the domestic market, and add just 25 percent value to that market, the value of the market doubles.