Because we know that the book value per share is 5.

And this calculation, this multiplication of market price per share times the number of shares this is called the market cap

Anyway, fair enough.

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

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

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

Here, what multiple are we paying?

The Tokyo stock market recorded an unprecedented loss.

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)

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

The stock market tumbled.

The stock market is often called a dangerous one.

And it happens to be at a time let's say it's 1999.

Almost every one of those has come true just a few years later.

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 market has dropped today.

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

So that's fine.

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

That's still way more expensive than most companies.

He lost a fortune in the stock market.

He's got a top hat.

Again sent tremors through the financial markets

First, the stock market would go.

And it's something interesting here.

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

The stock market is very active.

The stock market is severely depressed.

We were risk takers, of course.

Another type of dynamic pricing is real time markets.

So what are the signs that things are fundamentally changing?

Remember, there's a difference between book value and market value.

It's the best price that someone's willing to give you for something.

So the first one I'd like to parce is the idea of market value.

So we have to be careful.

So let's call that market equity.

Our price is considerably higher than the current market price.

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

I'm just making up numbers.

So I'll pay 2 per share, which is a little bit of premium over the market value at the time, which was 1.

So I think you had more and more people thinking that they were saving when they weren't.

The stock market is in a prolonged slump.

So I made 50 off of this trade.

There's a World Bank, arms dealers and a United Nations.

So really the stock has no value.