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.

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.

I'm just buying that share from another guy.

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

SCOTT Inc.'s stocks are blue chip stocks.

Well, what's the market cap?

They've never made money.

So with the if statement, if the test expression is True we go to the block, run the block and then continue if the test expression was False , we go right to the next expression

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

He's a stockbroker.

He's got a top hat.

BL Daphne, if I may draw your attention to one thing.

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

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

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

Then, you can buy back the stock

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?

And equity securities you're probably familiar with.

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?

It is a customary contraction like our

'Company.' It is a customary contraction like our

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

But in this case, you literally just take the price of the stock and you divide it by the earnings per share.

So what are the signs that things are fundamentally changing?

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

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

goodness.

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

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

And then the bank sets up a special purpose entity.

Again sent tremors through the financial markets

Stockbroker.

Stockbroker?

And we have some cash, we have 5 million in cash.

It could split the Special Purpose Entity into a million or ten million shares and then sell those shares to investors.

let's say this is a publicly traded company.

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

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

You're not buying the stock from that company.

We take 7.5 million from this seed venture capitalist.

Sometimes called the market cap.

I think they're CFC.

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.

They've never made money.

And you?