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?

So just as the big picture, both of these things are traded.

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

All that means is that both of their shares are traded on exchanges

And you get a 6 billion market cap.

And then, when the stock starts to move up they get scared and they buy it, and it causes the stock to move up even more.

And that's a real example, in which have lost millions if not billions of dollars.

When you normally buy a stock on an exchange, as the New York Stock Exchange, you're just buying the stock from somebody else.

In the Tokyo stock market, stocks of about 450 companies are traded over the counter.

My father is very much involved in the stock market now.

Remember, the secondary market, the stock market, most of that is between two people who are unrelated to the company, trading the shares of stock.

And in the last video we talked about if the market is actually trading at 12.00 a share, if people exchanging those shares between themselves.

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.

Intrepus stock is being absolutely pummeled

But he owes one share of IBM.

New York is the center of America's stock exchange.

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

SCOTT Inc.'s stocks are blue chip stocks.

It's not going to the company.

Because these shares that you're selling, they're not traded on a public exchange

Well, what's the market cap?

But let's say my analysis is correct, and a couple of days

And when the government of Singapore, or any investor, wants to buy new shares, they use the market value, what that stock is trading at, as a good reference point for what you might have to pay for those shares.

Boss, we went through Scott Rowe's bank statements and brokerage accounts.

And equity securities you're probably familiar with.

I'm just buying that share from another guy.

In the last video we saw that if Ben's shoe company's stock prices are trading at 21.50 per share and if Ben's shoe company has 10,000 shares, and we saw that over here on the left....

goodness.

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?

He's a stockbroker.

They've never made money.

And just as an example, I said well let's say that Bank A is a public company.

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

He's got a top hat.

Again sent tremors through the financial markets

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

The company went public and became listed on the stock exchange in 1990.

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

Sometimes called the market cap.

I think they're CFC.

It is a customary contraction like our

'Company.' It is a customary contraction like our

Even more, let's say for whatever reason, because not so many people could afford this stock, because just to get in the game, you've gotta put up 100,000 to buy a share.

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

On an Exchange Traded Funds, only approved people only and these are usually large institutions can go to the fund and say I want to buy or redeem a big block of shares.