So another way to think about it, in exchange of him putting 400 into this corporation, he gets 4 shares, or each share is worth 100.

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

And I have a publicly traded price, so on any given day,

So that means if all of these numbers are correct, then the stock of that company is worth 6.00 per share.

Our liabilities are still 3 billion.

It's actually horrible.

I think that's 10 shares. Well that's my intention.

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)

Well, what's the market cap?

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

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

So if we believe all of these numbers, and we know that

And the equity's 1 million, because there's no debt, so all of the assets are held by the equity holders.

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

By applying the same price to earnings, we're saying that the market value of this equity is 210,000, while the market value of this equity is what was it? 189,000.

The stock, which was valued. at 1½, now has a par value of over 9 a share.

And maybe this guy's even growing faster, so maybe they're being conservative by only giving this guy a 10 price to earnings.

So this is this 3 billion of equity divided by the number of shares.

Sometimes called the market cap.

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

But before and after this round, that angel said oh, your shares are worth about 5 per share.

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

They've never made money.

Normally, before you sell something you have to buy something

It has 500 million shares.

So according to the accounting, this equipment is no longer worth 500,000.

So if we believe these numbers, if we believe the books, the book value of the shares is about 3.02 per share.

We take 7.5 million from this seed venture capitalist.

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

So the question is what makes up the gap here? when we think about the market value of the equity.

Yeah, these are kinda cliché. So, but, this one is so much fun, that gt gt gt laugh gt gt gt this one's worth seeing.

So if the first expression evaluates to True then the value of the or construct is True and there's no need to evaluate the second expression and in fact the Python interpreter does not evaluate it

The last closing price for Ben's stock was 21.50 share

Another type of dynamic pricing is real time markets.

So this is interesting.

In this case, you're saying that the equity in this company is worth 189,000.

They're saying it's worth 5 million.

It's invaluable, sir.

And the equity holders get wiped out, the old equity holders.

Worth killing for.

And going price on those exchanges

And we also assign a value to the company given by the operating revenue.

So over here, let's say you did it right at the beginning of the year, the asset's worth 500,000.

You were worth every penny.

They've never made money.