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

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

Our liabilities are still 3 billion.

It's actually horrible.

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

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

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.

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?

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

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

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

They've never made money.

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

It has 500 million shares.

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

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

Sometimes called the market cap.

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.

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

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

The Dow Jones average posted a gain of two points today.

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

They've never made money.

We take 7.5 million from this seed venture capitalist.

So, in this situation, let's think about this situation where the stock price goes down

So this is interesting.

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

And going price on those exchanges

And just to kind of tie it a little bit with what we did in the first video, if we have a million shares, the book value of the equity is 5 million, so if we say the book value per share is just going to be this number divided by the million shares I have.

But what's the situation where, let's say that on that day of trading, the share price is that 3.00 per share.

I said the price doesn't tell you much.

And I think this is very obvious to you, but let me write that down.

They're saying it's worth 5 million.

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

Normally, before you sell something you have to buy something

The Tokyo stock market recorded an unprecedented loss.

Another type of dynamic pricing is real time markets.

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

And that tells you that the book value per share is 4.

Stock Chart

Worth dying for.

Worth killing for.

It's invaluable, sir.