And I'm making the number really small just to make the drawing and the math easy

He's a stockbroker.

SCOTT Inc.'s stocks are blue chip stocks.

It is a customary contraction like our

'Company.' It is a customary contraction like our

It's actually horrible.

You're not buying the stock from that company.

goodness.

Stockbroker.

Stockbroker?

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

So 26 minus 23 is equal to 3.

They've never made money.

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

And you?

And that's called your equity.

I think they're CFC.

And equity securities you're probably familiar with.

What do you know about his personal life?

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

Well, what's the market cap?

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

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

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

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

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

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

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?

Our liabilities are still 3 billion.

And going price on those exchanges

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.

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

And you'll get extra bonus points if you figure out what this company is.

It can now support 2 million.

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

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?

The stock market tumbled.

Sometimes called the market cap.

Then, you can buy back the stock

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

It can do it by borrowing money, which is debt.

They probably took some fees or sold the loans for slightly more than they issued the loans for.

And let's say that there are 100 million shares.

They've never made money.

And the bottom line is, a short seller who's making money on the stock market, so they're shorting the stock at peaks and covering the stock at troughs, is actually reducing the volatility of the stock.