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

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)

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

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

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

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

The stock market tumbled.

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

Our liabilities are still 3 billion.

The Tokyo stock market recorded an unprecedented loss.

It's actually horrible.

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

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

And I'll do a bunch of videos on margins in the future.

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

The stock market has dropped today.

The stock market is often called a dangerous one.

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

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.

So the market cap, or what the market perceives the value of this equity is, the market capitalization, is these two numbers.

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?

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

That's still way more expensive than most companies.

And the best thing that we as humans have been to be able to come up with is a market.

It'll be worth twice as much to us on the black market.

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

Anyway, fair enough.

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

The stock market is in a prolonged slump.

So I made 50 off of this trade.

You might care about prediction.

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

Ben has actually done a good job of saying the market value of his inventory, the market value of his equipment.

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

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

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

They've never made money.