You knew this man.

He's a stockbroker.

The stock market is in a prolonged slump.

It is a customary contraction like our

'Company.' It is a customary contraction like our

They've never made money.

goodness.

So what he does is or he has an idea that says

SCOTT Inc.'s stocks are blue chip stocks.

Stockbroker.

Stockbroker?

So let's say this company has let me do it in mauve so this company's shares, let's say it has 1 million shares.

He invested two hundred dollars in a growing business.

If I had to ask you, In 2005 what was the best performing stock market or stock exchange in the world? Would Egypt come to mind?

And you?

It's actually horrible.

And all of that's great, and it's fine.

And equity securities you're probably familiar with.

What do you know about his personal life?

Well, what's the market cap?

So... what do we need to make this work?

Because some of income might be generated from non operating assets.

They've never made money.

So sal goes and gives 100, and says Pete, give me a share

The stock market tumbled.

Sometimes called the market cap.

Then, you can buy back the stock

I think they're CFC.

So essentially, whoever lent Loan C, all of these shares are now their shares.

So in both of these situations they have 10,000 shares

We were risk takers, of course.

If I buy a share of IBM a lot of people say, oh, I saved I saved my money,

And they can say like, this VC can say oh, you know what?

But if you look here, by giving the same price to earnings, because they're the same business.

let's say you owe 800,000 on your loan.

And it happens to be at a time let's say it's 1999.

It's dubai.The market is just opening there. I'm sorry.Excuse me,please.

But what I want to do in this video is make it a little bit more tangible, to really understand exactly what you're buying when you buy a share of stock.

And just to make it clear, what this equity is,

And then what's left over, which is essentially so this is 2 million of equity, and then you'd have 2 million of equity here this 2 million of new equity, right?

Yesterday's turnover on the stock market was 500 million shares.

So what they do is they just take your earnings number and you divide by the number of shares.

let me draw the shares, so there is one, two, three, four, five shares.

Let's say that I start this year in my stock portfolio with 95.00.

In the next video we'll go into more depth on Price to