When they assign a 120,000 market cap there...

let's say this is a publicly traded company.

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?

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)

So 26 minus 23 is equal to 3.

Our liabilities are still 3 billion.

I think I originally set in the original video that we have 500 million shares.

Because the balance sheet is often called the company's books.

liabilities plus equity.

We're now moving into East Africa.

In a world without leverage so if I didn't have all this

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

I use 100 gold pieces.

And the way you get that is, they're saying 3 a share and there are half a billion shares.

He lost a lot of money in the stock investment.

So this is my liabilities.

What happens in a closed end fund is that all of the investors are essentially

The investment bank at least starting off with all of the shares of the Special Purpose Entity.

because they're both on the right hand side.

I put it in, I don't know, maybe I'm a good investor.

So 5 million of liabilities.

This is the building.

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

Let's think a little bit about leverage.

And then the equity is, essentially we would look at this formula.

So the shareholders' equity, or you could almost say the book value of the equity of the company, is 5 million. 5 million equity.

Other current assets.

But it's really a measure of the same thing.

He's a stockbroker.

You can pass it around.

SCOTT Inc.'s stocks are blue chip stocks.

I owe these people that money is 700 and my equity is 300.

My new balance you will look like this 150 and 150.

You have 3 billion of assets, 4 billion of liabilities, this is actually minus 1 billion of equity.

What you want to do is to aggregate it all together.

What this says is look if each of those 10,000 slices of the equities are worth 21.50 then the entire equity portion is going to be what the market is valuing it at 215,000

He made a killing by investing in the stock market.

And I'm going to earn, or I'm going to grow just because

It is a customary contraction like our

'Company.' It is a customary contraction like our

It's actually horrible.

The board of directors of a firm is essentially elected by the shareholders.

goodness.

So in our example right now, what is our equity?

But I have let's see 700 of liabilities.